UNION BANK TO RAISE CAPITAL BASE
Union Bank of Nigeria PLC has concluded arrangements for an Extra-Ordinary General Meeting to seek shareholders approval to raise additional capital through a placing process from strategic investors with multinational banking experience.The meeting, scheduled for Thursday, September 27, 2007 at the Royal Tropicana Hotel, Kano, would enable the Bank to seek the shareholders’ approval to take all necessary steps in pursuance of the process, subject to regulatory and statutory requirements to increase its authorized share capital from N7,500,000,000 to N10,000,000,000.
Furthermore, the shareholders’ consent would be sought by the directors to write off the goodwill of N15,721,202,896 arising from the acquisition of Universal Trust Bank PLC, Broad Bank of Nigeria Limited and Union Merchant Bank Limited from the N71,069,554,424 in the Share Premium Account and to utilize part of the Share Premium Account in writing off the outstanding goodwill as provided by Companies and Allied Matters Act 1990.
The Group Managing Director/Chief Executive of the Bank, Mr. Barth Ebong, stressed that the measures were part of the Bank’s strategic efforts towards further positioning it for the unfolding domestic and global challenges of today’s banking as well as consolidate its leadership position in the industry.
With a cumulative shareholders’ fund of over N100.50 billion, Union Bank remains one of the most capitalized banks in Nigeria, following the success of its last recapitalisation drive which raked in over N55 billion from its rights issue and public offer respectively, above its initial target of N40 billion.
Union Bank has also been listed among the Top 1000 World Banks for 2007 by The Banker magazine of the Financial Times Group. In its recently released yearly global banking rating for 2007, the Bank achieved an international ranking of 502 and a country ranking of 2 in Nigeria.Also recently, Fitch Ratings, a foremost international rating and research agency, assigned the Bank National Long and Short-term ratings of ‘A+ (nga)’ and ‘F1’, respectively, as well as Issuer Default Rating (“IDR”) ‘B+’ with a stable outlook.The recognitions are coming on the heels of 2000, 2001, 2002 and 2004 The Bank as well as 2006 Euromoney
Furthermore, the shareholders’ consent would be sought by the directors to write off the goodwill of N15,721,202,896 arising from the acquisition of Universal Trust Bank PLC, Broad Bank of Nigeria Limited and Union Merchant Bank Limited from the N71,069,554,424 in the Share Premium Account and to utilize part of the Share Premium Account in writing off the outstanding goodwill as provided by Companies and Allied Matters Act 1990.
The Group Managing Director/Chief Executive of the Bank, Mr. Barth Ebong, stressed that the measures were part of the Bank’s strategic efforts towards further positioning it for the unfolding domestic and global challenges of today’s banking as well as consolidate its leadership position in the industry.
With a cumulative shareholders’ fund of over N100.50 billion, Union Bank remains one of the most capitalized banks in Nigeria, following the success of its last recapitalisation drive which raked in over N55 billion from its rights issue and public offer respectively, above its initial target of N40 billion.
Union Bank has also been listed among the Top 1000 World Banks for 2007 by The Banker magazine of the Financial Times Group. In its recently released yearly global banking rating for 2007, the Bank achieved an international ranking of 502 and a country ranking of 2 in Nigeria.Also recently, Fitch Ratings, a foremost international rating and research agency, assigned the Bank National Long and Short-term ratings of ‘A+ (nga)’ and ‘F1’, respectively, as well as Issuer Default Rating (“IDR”) ‘B+’ with a stable outlook.The recognitions are coming on the heels of 2000, 2001, 2002 and 2004 The Bank as well as 2006 Euromoney
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