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Existing Shareholders retain 21 per cent of Union Bank

Existing Shareholders retain 21 per cent of Union Bank

Existing shareholders of Union Bank will still retain 21 percent of the entity at the conclusion of ongoing capital injection by the new core investor. According to the banks’ group treasurer, Abayomi Oluyemi, the Asset Management Corporation of Nigeria (AMCON) will own 19 percent while the new core investor group will own 60 percent. As part of the scheme of arrangement, 10.967 billion shares will be cancelled while share reconstruction will be retained on the basis of 3 new shares for 16 existing shares.

At a presentation held in Lagos yesterday, he explained that the whole arrangement to recapitalise the bank would benefit all the parties. “The recapitalisation will bring in International Reputable companies as Shareholders. Core Investor will have a focus to increase value of Union Bank which will benefit all shareholders.” He added that the capital infusion by core investor, AMCON and existing shareholders will make Union Bank one of the most liquid bank in Nigeria.

For the customers, they would get the benefit of an old trusted brand in a renewed bank while major improvements in infrastructure, services and technology will make the banking experience easier and more enriching. “Level of capital injection means your money is safer than ever before. International best practice implemented in your bank while you can continue your business as usual (no new cheque book) with unusually great service.” Mr Oluyemi said the rejuvenated institution would ensure that the legacy of Union Bank continues to exist, while staff contribution to the legacy continues to be relevant and years of service continues to count towards career progression and entitlements of staff. “Staff stand to lose a lot if Union Bank ceases to exist as they will be required to reapply to the new bank and years of service will begin afresh.

Group managing director of the bank, Funke Osibudo said all is set for the court ordered meeting on September 30 seeking shareholders’ approval to go ahead with the recapitalisation plans. The meeting is to approve the scheme of arrangement between the lender and its potential core-investor - Union Global Partners limited.

Union Global Partners is a consortium comprising reputable names like ACA B - Holdings limited (ACA managed fund, FMO Netherlands, Standard Chartered Private Equity, Auctor capital, Carlye Capital, High Vistar); The Keffi Group VIII LLC ( Keffi Group, JC Flowers, BGI); ABC Holdings Limited (Banc ABC Botswana); and Discovery Group Of Connecticut, USA.

These will bring in the initial investment of $500 million while US OPIC will subsequently invest $250 million as Tier 2 capital.

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