UPDC to Engage Investors on N16bn Rights Issue
By Modupe Gbadeyanka
The management of UACN Property Development Company (UPDC) Plc has concluded plans to have discussions with shareholders of the company on its proposed rights issue.
The company is planning to raise about N16 billion from its shareholders through a process called rights issue.
During the exercise, the company would be selling a total of 15,961,574,145 ordinary shares at a unit price of N1 and in order to convince shareholders on the importance of the rights issue, the management has called for talks to explain things that may be unclear to them.
According to a notice obtained by Business Post, this meeting tagged Investors Forum, will take place in Lagos this week.
UPDC said in the disclosure signed by the Company Secretary, Folake Kalaro, that this gathering would be at the Arthur Mbanefo Hall, Festival Hotel Conference Centre & Spa at Amuwo Odofin, Lagos at 10am.
“UACN Property Development Company Plc is pleased to invite you to its Investors’ Forum scheduled to hold on Thursday, February 20, 2020, to discuss its ongoing rights issue of 15,961,574,145 ordinary shares at N1.00 per share.
“Venue [of the meeting is] Arthur Mbanefo Hall, Festival Hotel Conference Centre & Spa (former Golden Tulip Hotel), Amuwo Odofin, Lagos [and the time is] 10.00am,” the statement, which expressed its desire to receive the investors, stated.
Business Post gathered that on Tuesday (tomorrow), the management of the UPDC will be at the exchange to present a Fact Behind the Issue to the capital market stakeholders.
Recall that last year, UPDC announced that its parent company, UAC Nigeria Plc, was offloading its entire stake in the organisation.
In order to help reduce its outstanding debt to a sustainable level it is serviceable from recurring cash flows, it was raising N15.96 billion by way of a rights issue.
It was further stated that the unbundling will see UPDC operate as a standalone legal entity and be free to source appropriate structured capital.
According to UPDC, its exit from UAC Nigeria will ensure that “the ordinary shares that UAC holds in UPDC-post rights issue will be transferred pro-rata to all UAC shareholders, who will hold such UPDC shares in addition to their existing equity interest in UAC.
“UAC will cease to be a shareholder in UPDC, and UPDC will cease to be consolidated UAC’s financial statements.”
It further explained that “each UAC shareholder will become shareholders in three separate entities – UAC, UPDC, and the UPDC REIT, benefiting from the future prospects of each.”