Nigeria’s first generation bank, Union Bank of Nigeria (UBN) Plc, on Wednesday secured the approval of its shareholders to float a supplementary rights issue to raise N50 billion in new equity funds.
At the extraordinary general meeting in Lagos, shareholders approved five resolutions that mandated the board of directors of the bank to raise up to N50 billion by selling new ordinary shares to existing shareholders.
In order to accommodate the rights issue, shareholders approved increase in authorised capital of the bank from N9.5 billion, made up of 19 billion ordinary shares of 50 kobo each, to N17.5 billion, made up of 35 billion ordinary shares of 50 kobo each, by the creation of additional 16 billion ordinary shares of 50 kobo each.
Also, the memorandum and articles of association of the bank will be amended to reflect the increase in the authorised share capital to N17.5 billion.
Speaking after the approval, chief executive officer, Union Bank of Nigeria (UBN) Plc, Emeka Emuwa said obtaining shareholders approval for our capital increase is a necessary step bringing us closer to the rights issue.
According to him, increase in capital will further strengthen Union Bank’s near-term positioning and enable it to realise its long-term growth aspirations.
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