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Nigeria: Rights Issue – Union Bank May Seek Extension of Closing Date

Leadership (Abuja)

2 January 2012

Union Bank Plc may seek for extension of its rights issue offer which opened for existing shareholders on December 14, 2011.

The Executive Director, Corporate, International and Investment Banking and Treasury, Mr. Philip Ikeazor, who gave the hint at an interactive media session with the management of the bank, said the extension after the application list closes on January 20, 2012 might be necessary to give all its shareholders opportunity to participate and benefit from the rights issue which is the last lap of the bank’s recapitalisation process.

“If considered necessary, the bank will request for additional days so that no existing shareholder is left behind in the exercise of his/her rights, especially during this holiday season. This is because with the rights issue, existing shareholders will have the opportunity to fully participate in the recapitalisation process of the bank by taking up their rights,” Ikeazor said.

At the bank’s Exra-ordinary General Meeting held on September 30, 2011, the shareholders approved, amongst other resolutions, the Rights Issuance of 1,407,291,667 ordinary shares to existing shareholders at a unit price of N6.81 to all qualified shareholders.

The Rights also gave effect to the scheme between the shareholders, AMCON and Union Global Partners Limited, which would conclude the recapitalisation of the bank.

Ikeazor who noted that the rights circulars were now being distributed by Union Registrars Limited with every assurance that they would be received within the period of offer, said the issue has started well with a lot of enthusiasm expressed and exhibited by the existing shareholders.

He said the bank was desirous and eager to redeem its pledge of giving opportunities to the existing shareholders to take up rights in line with their clamour to do so during the recapitalisation process.

Ikeazor said the bank has completed its share reconstruction in order to accommodate new shares, adding that when the entire recapitalisation was completed and where the rights issue was fully subscribed, the shareholding structure of the bank would be 21 per cent for shareholders, 19 per cent for Asset Management Company of Nigeria (AMCON) and 60 per cent for Union Global Partners Limited (UGPL).

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