The Securities and Exchange Commission (SEC) has given Custodian Investment the go ahead to trigger a mandatory takeover at UACN Property Development Company Plc (UPDC).
Custodian Investment will acquire the minority shares at UACN Property Company, which is put at 34,415,332 Ordinary shares of 50 kobo each, and sold at a price of 90 kobo per share.
The mandatory takeover resulted from the deal both companies struck last year August, which saw UACN agree to sell 51 percent of UPDC. It was stated that the acquisition will be in two phases.
The first phase is a 5.1% sale of UPDC shares, then a final sale of 45.9 percent shares. In a new statement released to the investing public, Custodian Investment will be taking over 34.41 million shares.
The investment firm will part with estimated N30.79 million to takeover the shares. Note that since the deal was brokered in August 2020, UPDC’s market value had dropped from N15 billion to N14.10 billion as at May 24, 2021 – with shareholders losing about N900 million during the period.
But Custodian Investment’s market capitalisation has increased to N34.40 billion as at May 24, 2021, against the N30 billion market value it had in August last year.
Custodian Investment will begin the share purchase from May 30, 2021, to July 2, 2021.
According to the statement from the company, shareholders whose names appear on register before May 14 will be paid.
“The Qualification date for the offer will be May 1 4, 2021, and Shareholders whose names appear on the Register of Members as at the date, other than UAC of Nigeria Plc and Custodian Investment Plc are eligible to participate.”
By Fakoyejo Ayodeji
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