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Shareholders get UBA’s rights issue at 7.4% discount

By on January 7, 2015

United Bank for Africa  (UBA) Plc is offering  shareholders a discount of  7.4 per cent in its  on-going  Rights Issue, which opened last week.

The Nigerian Stock  Exchange (NSE) on Monday said the bank had formally sent a notification of the receipt of approval of the  Securities  and Exchange Commission (SEC) to open the issue.

The  offer is being made at N4 per share to shareholders  whose names appeared  on the company’s register as at 15th of  October, 2014  in a ratio of  one new share for every 10 shares already held.

THISDAY checks revealed that given the closing price of UBA shares of N4.32  yesterday, the shareholders are exercising their rights at  a discount of 7.4 per cent.
The bank is expected to raise N13 billion from the Rights Issue to boost the its diversified business across Africa.

Despite the headwinds in the financial sector, UBA has performed well over the years, winning some  awards last year. The bank won in five categories to become one of the highest single winning bank brands ‎ at  2014 awards organised in London by The Banker magazine.

Specifically, UBA was voted ‘Bank of the Year in Africa’ for 2014,  the  second time in three years of winning that award. Four country subsidiaries of UBA Group in Sierra Leone, Gabon, Senegal and Cote D’Ivoire also won “Bank of the Year” for their respective countries, reflecting a brand excellence that cuts across national bounds and pervades the continent. UBA Senegal won the award for the third consecutive year, having won in 2012 and 2013.

Commenting on the awards, Group Managing Director/CEO for UBA Plc, had said,  Phillips Oduoza, said, “winning this award twice in three years is a recognition of our commitment to delivering excellence and our consistent achievement of that goal. We remain focused on the realisation of our strategic intent of becoming Africa’s Global Bank and continue to explore opportunities in markets and sectors across the continent that will enable us achieve this intent.”

A publication of the Financial Times newspaper, The Banker is a global financial intelligence magazine that provides global bank ratings and analyses and is the definitive reference on international banking for high level decision makers globally. According to the magazine, the aim of the award ceremony “is to highlight industry wide excellence within the global banking community.”

One winning bank is selected from participating banks in each of the 120 countries from which entries are received for the competition.

 

[ThisDay]