By Dipo Olowookere
The minority shareholders of UAC Nigeria Property Development Company (UPDC) Plc have been offered about N31.0 million (precisely N30.974 million) to submit their stake in the firm.
The offer was made by Custodian Investment, the new majority shareholder of the organisation, in a statement issued on Monday, May 24, 2021.
Custodian Investment wants to acquire the 34,415,332 units of shares held by the minority investors at a unit price of 90 kobo, according to the disclosure.
It said the eligible investors are those in possession of the stocks at the close of business on Friday, May 14, 2021, with the offer expected to open on May 31 and close on July 2, 2021.
Custodian Investment stated that it was making this offer after the Securities and Exchange Commission (SEC) authorised it to embark on a Mandatory Takeover Offer (MTO).
“Following the approval of SEC via a letter dated May 18, 2021, Custodian Investment has been authorised to proceed with an MTO to be made to minority shareholders of UACN Property for the purchase of up to 34,415,332 ordinary shares of 50 kobo each at a price of 90 kobo per share.
“The qualification date for the offer will be May 14, 2021, and shareholders whose names appear on the register of members as at the date, other than UAC Nigeria Plc and Custodian Investment are eligible to participate. The offer is expected to open on May 31, 2021, and close on July 2, 2021.
Business Post recalled that in November 2020, UAC Nigeria transferred its 51 per cent stake, 9,465,584,668 ordinary shares in UACN Property, to Custodian Investment has been completed.
The transaction was done in two tranches with the first seeing the sale of 946,558,467 shares, representing 5.10 per cent of the issued share capital of UPDC to Custodian Investment and the second, the transfer of 8,519,026,201 shares, representing 45.90 per cent.
Custodian Investment said it would leverage on the over two decades of UPDC’s strong track record as a leading developer to drive its core property development business, saying that the recent rights issue to recapitalise the company has stabilised UPDC, thus creating a foundation for growth and added that UAC Nigeria’s continued ownership of a minority interest in UPDC will facilitate a smooth transition.
