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UBA Plans To Restructure Business Units, Reduce Share Capital

By on December 1, 2011

UBA has announced plans to seek shareholder approval in order to transfer its subsidiaries into a holding company as part of the CBN mandated restructuring exercise. The Nigerian lender has several subsidiaries including but not limited to UBA Capital, UBA Trustees, UBA Pensions Custodian, UBA Asset Management and UBA Metropolitan Life Insurance.

Following regulation introduced by the Central Bank of Nigeria as part of its banking industry re-structuring exercise, banks are no longer expected to operate under the universal banking model and must either sell their subsidiaries or form a holding coy, separate from the core banking unit, to absorb the subsidiaries.

UBA will seek shareholders approval at a scheduled December 29th meeting to transfer its subsidiaries  to a Holding company.

UBA will also have shareholders vote on a proposal to reduce its share capital from N 16.2 Billion to N 6.5 Billion.

This will then be followed by an issue of 19.4 billion new shares of 50 kobo to restore the share capital back to N 16.2 Billion.

UBA stock is currently trading at N 2.53, shedding 78 basis points in daily trading.