Union Bank of Nigeria Plc Rights Issue closes on 30 October 2017

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UnionBank1

Rights Issue, opened on 20 Sept, 2017, will close on Monday, 30 October 2017.

 

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Use of Proceeds:

 

80% of proceeds to be used as working capital

 

12% of proceeds to be invested in technology, innovation and digitalization

 

8% of proceeds to be invested in customer touch points

 

Details of the Rights:

 

Being Issued –                     12,133,646,995 Ordinary Shares of 50 kobo each

 

Rights Price –                       N4.10 per share

 

Gross Issue Proceeds –       N50, 000,000,000

 

Provisional Allotment –        5 new Ordinary Shares for every 7 Ordinary Shares of 50 kobo each held as

 

at the close of business on August 21, 2017

 

Worthy of Note:

 

(1) The Rights is offered at 31.55% discount to the stock’s current market price of N5.99,

 

(2) The theoretical market price of the stock after the Rights is estimated at N5.20.

 

In all two cases above, upside potential on the Rights price ranges between 26.9% and 46.10%.

 

Shareholders who do not wish to take up their Rights should take a cue from the wide upside potential in trading their Rights to interested investors.