Unity Bank to raise N39.2bn via rights issue, private placement | Bizness Watch

Unity Bank to raise N39.2bn via rights issue, private placement

Unity Bank plc is set to raise about N39.2billion which comes from Rights Issue of 38,446,689,710 ordinary shares of 50kobo each at N0.50kobo per share; and Private Placement of 40 billion ordinary shares of 50kobo each at N0.50kobo per share.

From the Rights Issue which is on the basis of 1 ordinary share for every 1 ordinary share held as at December 16, 2013, Unity
Bank plc targets to raise N19.2billion; while from the Private Placement, the bank targets to raise N20billion.

Acceptance list for the Rights Issue opens on May 12, 2014 and closes on June 18, 2014; while placing for the Private Placement opens on June 20, 2014 and closes on June 23, 2014. Post offer, Unity Bank plc will record growth in market capitalisation from N19.223billion to N58.446billion.

Speaking Monday in Lagos shortly after the completion board meeting of the offer, Nu’uman Barau Danbatta, chairman, Unity Bank plc said “this is a good step in the history of the bank”, adding that “it can only get better.”

“The more fundamental is the underlying changes we are making in the bank. A complete restructuring is going on. Considering where we are coming from and the challenges environment, the bank is ready to run in terms of corporate governance structure and management expertise,” he added.

The primary purpose of the rights offer is to enable the bank to shore up its capital adequacy in compliance with the Central Bank of Nigeria (CBN) directive on capital adequacy for banks in Nigeria based on the new prudential guideline. The bank’s capital raise will
improve the debt/equity mix, increase internal capacities for large ticket transactions, improve its information technology
and expand its branch network.

Speaking also at the meeting, Henry James Semenitari, managing director, Unity Bank plc said, “This is a new dawn in the history of Unity Bank plc.”

He added: “The offer proceeds will be judiciously utilised in line with best practice as contained in the offer document.”

Interstate Securities Limited is the Issuing House to the offer; Newdevco Investment & Securities Limited is the lead stockbroker to the offer; while Capital Assets Limited and APT Securities Limited are joint stockbrokers to the offer. Unity Registrars Limited is the
registrars to the offer; Wali Uwais & Co are solicitors to the bank; while Paul Usoro & Co are Solicitors to the offer.

Other professional parties to the offer are: Ahmed Zakari & Co (auditors to the offer); PKF Professional Services (reporting accountants); while GTBank plc and Heritage Banking Company Limited are receiving banks to the offer.


Leave a Reply

Your email address will not be published. Required fields are marked *