UPDC seeks NSE approval for N15bn Rights Issue
Dealing members of the Nigerian Stock Exchange (NSE) have been notified that UACN Property Development Company Plc (UPDC) through its Stockbroker, Stanbic IBTC Stockbrokers Limited, submitted an application to the Exchange for the approval and listing of a Rights Issue of 15,961, 563, 260 ordinary shares of 50kobo each at N1 per share.
The Rights Issue is on the basis of 43 new ordinary shares for 7 ordinary shares held. The Qualification Date for the Rights was Monday September 30, 2019.
Recently, the Board of Directors of UAC of Nigeria Plc (UAC) and UACN Property Development Company (UPDC) informed the Nigerian Stock Exchange (NSE), their shareholders and stakeholders that they are considering strategic initiatives involving a recapitalisation and restructuring of UPDC.
The initiatives, still subject to the review and approval of the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange, and shareholders of both companies will involve UPDC’s interest in UPDC Real Estate Investment Trust (UPDC REIT) being unbundled to UPDC shareholders via the allocation of REIT units directly to shareholders of UPDC in proportion to their post-Rights Issue holdings in UPDC (UPDC Unbundling).
UPDC management intends to raise N15.96billion in equity (via a rights issue) to eliminate UPDC’s interest-bearing obligations.