Union Bank Gets Shareholders’ Nod To Raise N50b

By Modupe Gbadeyanka

An approval has been given to Union Bank Nigeria Plc by its shareholders to raise about N5 billion through rights issue.

This came at an extraordinary general meeting of the bank that took place on Wednesday, December 7, 2016, in Lagos.

It was gathered that the shareholders, in a bid to accommodate the new shares, approved the increase of authorized 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 of approximately 16 billion ordinary shares of 50 kobo each ranking equally with the existing shares of the bank.

In view of this, the memorandum and articles of association of the bank will be amended to reflect the increase in the authorized share capital to N17.5 billion.

Adjusting the bank’s memorandum of association and the articles of association in order to authorize an increase in its share capital required the approval of at least a three-quarter majority of votes present at the EGM.

The issue was supported by shareholders representing together 99.6 percent of the votes.

Commenting on the development, CEO of Union Bank, Mr Emeka Emuwa, noted that, “Obtaining shareholder approval for our capital increase is a necessary step bringing us closer to the rights issue.

“Incremental capital will further strengthen Union Bank’s near-term positioning and enable us realize our long-term growth aspirations.

“We view the right issue approval as a strong sign of shareholder support for Union Bank’s growth strategy and our plans to scale up operations and strengthen our position in readiness for uptake when the macroeconomic direction changes.”