Don't Miss


Union Bank: New Investors to get 60 pct

By on September 9, 2011

Nigeria’s Union Bank said on Friday its $750 million recapitalisation deal will give a group of institutional investors led by African Capital Alliance (ACA) private equity a 60 percent stake in the troubled lender, while existing shareholders will get 21 percent.

The rescued bank said it will convene a shareholders’ meeting to approve the transaction at the end of September.

“After the recapitalisation, the new investors will have 60 percent, AMCON (the Asset Management Corporation of Nigeria) 19 percent and existing shareholders 21 percent,” a spokesman for the lender told Reuters.

Under the deal, which was agreed in principle in March, ACA will invest $750 million — $500 million in equity and $250 million in tier 2 capital. The bank will launch a rights issue to existing shareholders to complement the capital injection.

State backed “bad bank” AMCON will bring Union Bank’s net asset value to zero as part of the deal, the lender said in July.