Union Bank gets SEC Nod to Extend Rights Issue until February 10

Following its securing of approval from the Security and Exchange Commission (SEC), Union Bank has extended its right application to February 10^th 2012. The Rights Issue was slated to terminate on January 20^th, however the bank was unhappy with the success rate of the issue that was affected by the nationwide strike.

In a statement issued by the head of Corporate Affairs, Union Bank, Mr. Francis Barde disclosed, “”The strike slowed us down and made it impossible for most of our shareholders to take their rights.”

Union Bank is offering its shareholders 1.41 billion shares of 50 kobo each at N6.81 per share in the ratio of five new ordinary shares for every nine ordinary shares held as at October 21, last year. The application list opened December 14^th 2011.

The ED, Corporate, International and Investment Banking, Mr. Phillip Ikeazor has said all share holders will be given the opportunity to redeem their rights.

According to him, “We are desirous and eager to redeem our earlier pledge of giving opportunities to the existing shareholders to take up their rights in line with their clamour to do so during the recapitalisation process.”

Union bank is restructuring its capital after the CBN sanitization of 2009/2010. The company has already received a strategic investment worth several billion Naira from Africa Capital Alliance.