Economy
UAC Shareholders to Meet for Transfer of UPDC REIT Stocks
By Dipo Olowookere
On Monday, September 20, 2021, shareholders of UAC Nigeria Plc will gather for a court-ordered meeting (COM) to decide on what to do with the shares of the company in UPDC Real Estate Investment Trust (REIT).
Business Post reports that on Friday, July 23, 2021, the company obtained an order from a federal high court to convey a meeting of shareholders concerning the subject matter.
As part of a strategic review in 2018, the board and management of UAC Plc agreed that in the best interest of the company and to deliver more value to shareholders, it was necessary for the organisation to exit from its investments in the real estate sector in order to focus on the sectors that align with its core strategy.
UAC has the aim to generate attractive long-term, risk-adjusted returns for investors by growing its businesses into market leaders in their respective segments.
But because it was getting involved in different sectors, achieving this target was becoming difficult and it felt it was necessary to trim its operations to its core area of expertise.
The firm operates in animal feeds and edible oils, packaged food and beverages, paints, logistics, quick service restaurants (QSR) and real estate through UPDC Plc.
In 2020, UAC, as part of the unbundling strategy, reduced its ownership in UPDC from 93.86 per cent to 42.85 per cent following the sale of a 51 per cent stake to Custodian Investment Plc.
Last year, UPDC embarked on a process of unbundling its holdings in UPDC REIT to all its shareholders to maximise returns to its investors by providing direct access to the steady and regular dividend distributions of UPDC REIT as well as improving trading liquidity in UPDC REIT units.
As a result, UPDC transferred 649,392,661 units of UPDC REIT stocks to UAC, which still remains as one of its shareholders.
The board of UAC wants to transfer the 649,392,661 units of UPDC REIT shares it received from UPDC to its shareholders, necessitating the COM to be held in a month’s time.
At the meeting to be held virtually at 10:00 am, shareholders would be expected to approve “the transfer of the units held by the company in UPDC REIT to the eligible shareholders of the company (as defined in the scheme document) based on the application of the allocation ratio as specified in the scheme document.”
Business Post gathered the transfer of UPDC REIT units to UAC shareholders will be implemented through a scheme of arrangement under Section 715 of the Companies and Allied Matters Act (CAMA), 2020 as amended, incorporating a reduction in share capital under Section 131 of CAMA (the Scheme). The effect of this is that the units of UAC in UPDC REIT will be transferred to shareholders, pro-rata to their shareholding in UAC.
If the scheme is approved and when it is implemented, UAC’s shareholders will hold UPDC REIT units in addition to their existing shares in UAC and UAC will cease to be a unitholder in UPDC REIT.
This means UAC will no longer be a direct shareholder in UPDC REIT but eligible shareholders of UAC will become the direct shareholder of UPDC REIT.
As a result, the share capital account of UAC will reduce by N3,896,355,966, being the value of the transferred units through the reduction of its share premium account and the share premium deduction amount shall be transferred into the UPDC REIT unbundling liability account.
UAC has said a day after the COM, it should file the resolutions with the Corporate Affairs Commission (CAC) and on October 20, the formal approval of the Securities and Exchange Commission (SEC) is expected to be obtained and on November 4, a sanction of the scheme should be obtained from the court, while a day after, the Certified True Copy (CTC) should be sent to SEC.
It stated that after the last trading day to qualify for the scheme (eligibility date) on November 8, it would register the CTC of the court sanction at the CAC on November 11 and the next day, this would be published in two national newspapers and on November 18, the accounts of the eligible shareholders would be credited with the corresponding number of shares and on November 22, the summary report would be filed with SEC.
By Adedapo Adesanya
Three stocks further weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.12 per cent on Wednesday, April 8, with the Unlisted Security Index (NSI) down by 44.43 points to 3,930.91 points from the previous day’s 3,975.34 points, and the market capitalisation went down by N26.59 to N2.351 trillion from N2.378 trillion.
MRS Oil lost N11.00 during the session to close at N161.00 per share compared with Tuesday’s closing price of N172.00 per share, Central Securities Clearing System (CSCS) Plc dipped by N3.74 to N67.95 per unit from N71.69 per unit, and Afriland Properties Plc fell by N1.10 to sell at N15.95 per share versus N17.05 per share.
There were two gainers at the midweek trading session, led by IPWA Plc, which appreciated by 55 Kobo to N6.61 per unit from N6.06 per unit, and First Trust Mortgage Bank Plc improved its value by 4 Kobo to N2.32 per share from N2.28 per share.
Yesterday, the volume of securities rose by 620.4 per cent to 5.7 million units from 797,264 units, the value of securities increased by 25.1 per cent to N32.7 million from N26.1 million, and the number of deals climbed by 12.1 per cent to 37 deals from the preceding session’s 33 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, trailed by CSCS Plc with 57.2 million units exchanged for N3.9 billion, and Okitipupa Plc with 27.5 million units traded for N1.8 billion.
GNI Plc also finished the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Resourcery Plc with 1.1 billion units worth N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
By Adedapo Adesanya
Foreign Exchange (FX) demand pressure eased on the Naira on Wednesday, April 8, in the Nigerian Autonomous Foreign Exchange Market (NAFEX) after gaining N14.84 or 1.07 per cent against the greenback to quote at N1,371.82/$1 compared with the previous day’s N1,386.66/$1.
Also, the local currency appreciated against the Euro in the same market window at midweek by N1.54 to close at N1,604.07/€1 versus Tuesday’s closing rate of N1,605.61/€1, but lost N6.26 against the Pound Sterling to trade at N1,844.83/£1 versus N1,838.57/£1.
In the parallel market, the exchange rate of the Naira to the US Dollar remained unchanged yesterday at N1,410/$1, according to data sourced by Business Post.
There were indicators that the official FX market experienced a liquidity surge, which eased worries around the dominant US Dollar on Wednesday, as the Central Bank of Nigeria (CBN) revealed interbank deals rose to 220 from 71 reported the previous day.
The domestic currency has been in strong demand from foreign portfolio investors seeking to purchase OMO bills and other fixed-income instruments.
Forecasts also show that the local currency will remain relatively stable during the second quarter of the year, trading within the N1,340 to N1,430 per Dollar band on improved FX liquidity, stronger oil earnings, and rising external reserves, which have climbed above 50 billion dollars.
As for the cryptocurrency market, it fell after an initial ceasefire-fueled rally, with markets retracing Wednesday’s “ceasefire euphoria” as cracks emerge in the US-Iran truce while the Strait of Hormuz remains effectively closed.
Global risk assets face renewed pressure as geopolitical uncertainty combines with what analysts call “uncoordinated tightening” by major central banks, reinforcing higher-for-longer interest-rate expectations.
The price of Cardano (ADA) fell by 4.7 per cent to $0.2500, Ripple (XRP) slumped 3.7 per cent to $1.33, Dogecoin (DOGE) shrank by 3.5 per cent to $0.0915, Binance Coin (BNB) slipped 2.6 per cent to $600.02, Ethereum (ETH) went down by 2.5 per cent to $2,183.82, Solana (SOL) dipped 2.5 per cent to $82.24, and Bitcoin (BTC) depreciated by 1.1 per cent to $70,995.20.
However, TRON (TRX) appreciated by 0.4 per cent to $0.3173, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rallied by 0.28 per cent on Wednesday despite weak investor sentiment, as the bourse ended with 18 price gainers and 38 price losers, implying a negative market breadth index.
The growth recorded yesterday by Customs Street was influenced by the 2.11 per cent rise posted by the energy index, and the 1.79 per cent jump achieved by the banking sector.
The other sectors experienced profit-taking, with the consumer goods losing 1.07 per cent, the insurance counter down by 0.36 per cent, and the industrial goods space down by 0.19 per cent.
Universal Insurance chalked up 10.00 per cent to sell for N1.21, Omatek improved by 9.78 per cent to N2.47, VFD Group expanded by 9.71 per cent to N11.30, CWG appreciated by 9.64 per cent to N21.05, and Livestock Feeds gained 9.56 per cent to close at N7.45.
On the flip side, UPDC REIT lost 10.00 per cent to settle at N6.75, Fortis Global Insurance shed 9.92 per cent to quote at N1.18, Deap Capital depreciated by 9.85 per cent to N5.40, Chams went down by 9.47 per cent to N3.06, and Japaul declined by 8.82 per cent to N3.10.
Yesterday, the All-Share Index (ASI) went up by 562.43 points to 202,585.53 points from 202,023.10 points, and the market capitalisation advanced by N389 billion to N130.404 trillion from N130.015 trillion.
During the session, 1.0 billion stocks worth N40.6 billion exchanged hands in 52,723 deals compared with the 1.1 billion stocks valued at N40.3 billion executed in 78,006 deals a day earlier, indicating an uptick in the trading value by 0.74 per cent, and a shortfall in the trading volume and number of deals by 9.09 per cent and 32.41 per cent apiece.
The activity chart was led by Access Holdings, which sold 233.0 million units valued at N6.1 billion, Fidelity Bank exchanged 113.1 million units worth N2.2 billion, Wema Bank recorded a turnover of 103.3 million units valued at N2.7 billion, Zenith Bank transacted 60.6 million units for N6.5 billion, and Chams traded 47.5 million units worth N154.6 million.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn