Unity Bank plans to raise N38bn through special placement

Shareholders of Unity Bank on Monday approved the bank’s plan to raise over N38 billion through special placements or rights issue.

The shareholders gave the approval at the bank’s third Extra-General Ordinary Meeting (EGM) held in Lagos.

Specifically, they mandated the board and management of the bank to increase Unity Bank’s share capital from N30 billion to N60 billion.

They also authorised the directors to raise additional capital through the issuance of 40 billion ordinary shares at 50k through special/private placements.

The shareholders authorised the directors to explore other steps such as mergers and acquisition or any other form of business combination for the purpose of raising capital.

They also endorsed that the 38.45 billion issued and fully paid ordinary shares of 50k in the capital of the bank be reconstructed into 9.61 billion ordinary shares of 50k.

The shareholders also approval the allotment of one new share for every four already held by existing investors.

Mr James Henry Semenitari, the bank’s Non-Executive Director, said that the fund raising would create new businesses for the bank.

Semenitari said that the bank had been restructured and transformed to do business in more robust ways in the years ahead.

“We know the importance of capital and that’s the essence of the recapitalisation exercise and we hope to raise over N38 billion,” he said.

Semenitari said that the bank’s major goal was to emerge among the top five banks operating in the country in the next couple of years.

The non-exective director also expressed optimism that the recapitalisation would be oversubscribed, noting that the excess monies would be absorbed by the bank.

He said that the bank’s future growth would be driven by people, process and proceeds, adding that the bank would encourage indigenous businesses. (NAN)