Union Bank completes share reconstruction

Union Bank of Nigeria Plc has announced the completion of its share reconstruction exercise.In a notice to the Nigerian Stock Exchange on Friday, the bank said that as a result of this, a total of 2.533 billion shares at N11.15 per share were admitted on the Daily Official List.According to the notice, this is in replacement of the former issued shares of 13.51 billion.Thus, the full suspension placed on the banks shares by the NSE was subsequently lifted.The bank had penultimate week commenced its 1.407 billion shares Rights Issue, following an approval obtained from the Securities and Exchange Commission.According to the statement, the issue will afford investors the opportunity to fully participate in the recapitalisation process of the bank by taking up their rights at a unit price, which will be sold at N6.81 to all qualified shareholders.The rights also give effect to the scheme between the shareholders, AMCON and Union Global Partners Limited, which will conclude the recapitalisation of the bank.The statement explained further, Shareholders had unanimously voted in favour of all the options and plans of the recapitalisation process, as recommended by the Board of Directors of the bank, and we received the consent of all parties involved to float a Rights Issue of 1.407 billion ordinary shares at a price of N6.81 per share.Since there had been a lot of clamour from our shareholders to be given the opportunity to be a part of the recapitalisation process, we decided to float the Rights Issue, as it would offer the existing shareholders an opportunity to participate in the recapitalisation and also increase their stake in the bank, the bank added.Meanwhile, the NSE report for the week ended December 23, 2011 recorded a turnover of 158.93 million units, worth N138.07bn were exchanged in the Over-the-Counter Bond market last week, in 677 deals.This was in contrast to the 99.54 million units, valued at N85.63bn exchanged the preceding week, in 825 transactions.The report observed that the most active bond was the 10.70 per cent FGN May 2018 Bond with a traded volume of 26.5 million units, valued at N21.79bn in 111 deals.Nestle Nigeria Plc led the gainers chart for the week, rising by N21.20 or five per cent to close at N445.66 per share. Total Nigeria Plc recorded the highest loss, shedding five per cent or N9.90 to close at N188.10 per share.
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