Reps halt Union Bank's recapitalisation

THE House of Representatives, on Tuesday, asked the Director-General of the Securities and Exchange Commission (SEC), Ms Arunma Oteh, to stop further approvals to the Union Bank of Nigeria on its Rights Issue and its recapitalisation process until the bank responds to issues raised in a petition before the House.Union Bank Plc wants to merge with core investor, African Capital Alliance Consortium (ACA Consortium).The House, through its chairman, Committee on Capital Market and Institutions, Honourable Herman Hembe, had, in a letter to the Director-General of SEC, with reference number NASS/7HR/CT.16/06/057 and entitled 'Interactive Meeting in Respect of Union Bank of Nigeria Plc recapitalisation,' said the order of the House became imperative as 'to safeguard the interests of the shareholders and to ensure that due process is followed in the exercise.'Honourable Hembe further explained that the decision of the committee was 'part of the process that we have started to look into merger of banks. We asked them pertinent questions on the recapitalisation process, particularly as regards the rights issue that Union Bank undertook and we found out that they were not prepared to give us the necessary answers that we asked.
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