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UBA Stock Placed On Full Trading Suspension

By on January 2, 2013

 

Shares of UBA Plc on the Nigerian Stock Exchange have been placed on a full trading suspension by the NSE management in order to enable the company finalize its restructuring exercise.

Shareholders of UBA recently approved the bank’s restructuring plan to bring it in compliance with the CBN’s ban on universal banking. The restructuring plan will see UBA split into four entities as listed below:

 

1. UBA Plc – the Nigeria bank, all African banking subsidiaries (18), UBA Pension Custodians, UBA FX Mart and UBA Capital Europe

2. UBA Capital Plc – UBA Asset Management, UBA Trustees, UBA Metropolitan Insurance, UBA Stockbrokers, UBA Insurance Brokers, and UBA Nominees

3. African Prudential Registrars Plc

4. Afriland Properties Plc

 

According to the scheme document, UBA’s shares will be placed on full suspension on 03 January 2013, while the indicative date for the listing of UBA Capital and African Prudential Registrars on the NSE is 11 January 2013.

 

This transaction is such that the capital of each spun off company (2 – 4) will be allotted to eligible shareholders of UBA proportionately, making them 100% owners. However, Afriland Properties will be listed at a future date (undisclosed). Its shareholders have the option to 1) sell their allotted shares to other interested shareholders within a 7-day period starting from 02 January 2013 (indicative date from Scheme document), 2) sell at a future date via UBA Stockbrokers, or 3) sell when it is listed in future.