UACN to raise capital via rights issue

UAC of Nigeria Plc plans to raise capital to expand its operations via a rights issue.

The Nigerian Stock Exchange said the company had notified it of the plan.

According to the NSE, the additional capital is meant for the company’s business expansion and further development of its subsidiaries.

The Exchange said in a report that UACN said it “is presently considering certain proposals and options, which will be subject to agreeing substantive terms and shareholders’ approval.”

The proposed capital raising, the NSE said, would be presented to the company’s shareholders for approval at its next annual general meeting.

“UACN, therefore, advises shareholders to exercise caution when dealing in the company’s shares until a further announcement is made,” the statement said.

Meanwhile, the Exchange said it admitted an additional 6.045 billion ordinary shares of Access Bank Plc for trading.

The bank had offered the shares to existing shareholders via a rights issue on the basis of one new ordinary share for every three ordinary shares held in a bid to raise N41.8bn to strengthen its operations.

The addition of the shares brings the total outstanding shares of Access Bank to 28.927 billion shares.

The bank had announced the completion of the rights issue two weeks ago, saying it was a success.

It explained that the rights issue placed investors firmly at the centre of its strategy, ensuring sustainable dividends through one of the strongest capital buffers as well as providing the means for further investment to exploit target markets.

The Group Managing Director, Access Bank, Mr. Herbert Wigwe, was quoted as saying that the issue was part of steps to strengthen the bank.

He said, “We are putting in place the building blocks for our future as we work to becoming a top three bank in Nigeria by 2017.

“The capital raised will allow us to retain our place among Nigeria’s best-capitalised banks and underscores our continued commitment to prudent risk management as we seek growth opportunities both in Nigeria and abroad.”

Wigwe added that the additional capital would allow the bank to invest in infrastructure and technology, which would make speed, service and security a guarantee for its customers.

Source : Punch

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