Dipo Olowookere
By Dipo Olowookere
About 946.6 million shares have been transferred to Custodian Investment Plc by UAC Nigeria Plc in an off-market deal on the Nigerian Stock Exchange (NSE) on Tuesday, September 1, 2020.
Business Post gathered that the transaction was a negotiated cross deal between both parties through a stockbroker, Interstate Securities Limited.
It was the first tranche of the proposed divestment of 9,465,584,668 ordinary shares of 50 kobo each at 70 kobo per unit of UACN Property Development Company Plc held by UAC of Nigeria Plc to Custodian Investment Plc.
Last month, Custodian Investment informed the market that it was acquiring about 51 per cent stake of UAC Nigeria in UACN Property Development Company Plc.
According to Custodian Investment, this deal would be done in two tranches and will see UAC Nigeria transferring a total of 9,465,584,668 UPDC ordinary shares to it (Custodian Investment).
On August 28, 2020, the NSE approved the application filed by Interstate Securities Limited concerning the transaction.
Today, a total of 946,558,467 ordinary shares of UPDC held by UAC Nigeria were formally transferred to Custodian Investment at the stock exchange.
“A total of 946,558,467 units of UACN Property Development Company were done as an off-market trade today, September 1, 2020, at 70 kobo in one deal.
“This was a negotiated cross deal by Interstate Securities Limited as both the buyer and seller,” a notice from the exchange today confirmed the transfer.
Last month, Custodian Investment, which offers a wide range of financial products and services, said it views the real estate sector, in spite of its recent challenges, as a complementary sector to its product offering.
It said despite UPDC’s certain challenges in recent times, an investment in the company is expected to provide attractive valuations relative to replacement cost and market values because of both UPDC and UPDC REIT trade at attractive valuations relative to the market values of their underlying assets.
It further said UPDC REIT is highly cash generative with recurring income streams, saying it has distributed an average of N1.4 billion per annum over the last five years.
“Rental income from UPDC REIT is underpinned by leases with first-tier tenants. This presents a good match for our business,” it said.
“UPDC has N10 billion of assets for sale which the management team will focus on realising to provide shareholders with liquidity,” it added.
