The Custodian Investment Plc has signed a binding agreement with UAC of Nigeria Plc to purchase 51 per cent equity interest in UACN Property Development Company (UPDC) Plc.
Mr Wole Oshin, Group Managing Director, Custodian Investment, made this known in a statement posted on the Nigerian Stock Exchange (NSE) on Monday in Lagos.
Oshin said the company had signed a binding agreement with UAC for Custodian to purchase a 51-per cent equity interest in UPDC from UAC.
He said the agreement marked the beginning of a partnership between Custodian and UAC that would achieve both companies’ respective objectives in the real estate industry.
“It also marks a significant milestone aligned with UAC’s strategy to focus on its core businesses,” he stated.
Oshin said a total of 9,465,584,668 UPDC Ordinary shares (Sale Shares) held by UAC, representing 51 per cent of UPDC’s issued share capital, would be sold to Custodian.
He said the sale shares would be in two tranches initial sale of 946,558,467 shares, representing 5.10 per cent of the issued share capital of UPDC, on the execution of binding transaction agreements.
Oshin added that there would be a subsequent sale of 8,519,026,201 shares, representing 45.90 per cent of the issued share capital of UPDC upon receipt of requisite approvals.
According to him, completion of the sale is subject to regulatory approvals from the NSE and the Federal Competition and Consumer Protection Commission.
Commenting on the transaction, Oshin said the partnership would provide multiple levers for value creation.
“We, at Custodian, are excited about the possibilities arising from this partnership with UAC, which provides multiple levers for value creation.
“The rationale for the transaction is that Custodian and UAC share the view that their ambitions for capturing the opportunity in the real estate industry will be better achieved working in partnership,” he said.
ALSO READ: Buhari mourns as leader of Tijjaniyya Islamic movement in Africa dies
Oshin, however, advised the shareholders to exercise caution when dealing in the securities of Custodian, UAC, and UPDC until requisite approvals are obtained.
Also, Mr Folasope Aiyesimoju, the Group Managing Director of UAC, said the transaction was a significant step in achieving its objectives for UPDC.
“The transaction is a significant step in achieving our objectives for UPDC.
“In 2018, the Board and Management of UAC embarked on a strategic review to evaluate the performance of the company and its subsidiaries.
“The objective is to achieve sustainable positive financial performance from our existing operations and enable management to focus on businesses that align with our strategy.
“In reviewing UPDC, the board weighed the long-term opportunities in the Nigerian real estate sector against the fundamental differences between the cash flow profile and capital needs of UPDC and those of the other entities in UAC’s portfolio.
“Following its review, the board concluded that it would be in the best interest of UAC to exit its interest in the real estate sector.
” It allows UPDC to operate as a stand-alone legal entity, free to source appropriately structured capital and to unlock value for its shareholders,” Aiyesimoju said.
NAN
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
$3.313bn Chinese Loans: Nigeria Pays $461m, Still Owes $3.12bn
DESPITE paying the sum of $461.89million (about 13.4 per cent ) of the $3.313billion debt (Chinese loans) owed the Peoples Republic of China, the outstanding (Chinese loans) against Nigeria is still $3.12billion (about 94 per cent), a document from the Debt Management Office has revealed…
$500m Loan: Review All Foreign Loan Agreements, PDD Tells NASS
The Peoples Democratic Party (PDP) has urged the National Assembly to begin a review of all agreements in foreign loans entered into by the All Progressives Congress (APC)-led Federal Government…
MONDAY LINES: ‘Mamman Daura Seeks Competence’
Leader of the ‘unseen’ persons ruling us, Alhaji Mamman Daura, spoke last week. He said enough of turn-by-turn presidency for Nigeria. He decreed that North-South rotation of the presidency of Nigeria should be dead; from 2023, the most competent among contenders would be put in the Presidential Villa…
Pastor Olukoya, Awolowo And Eternal Life
There is a viral audio online in which the General Overseer of the Mountain of Fire and Miracles Ministries (MFM), Pastor Daniel Olukoya, suggested that Papa, Chief Obafemi Awolowo, “did not fulfil his destiny” of becoming the president of Nigeria because he “never surrendered his life to Jesus till he…
Order Buhari To Publish Details Of Govt Loans Since 2015, SERAP Tasks Court
THE Socio-Economic Rights and Accountability Project (SERAP) has asked the Federal High Court, Abuja to order President Muhammadu Buhari to “publish details of loans that have been obtained by the government since May 29, 2015, including the interest rate, the total amount of debts so far incurred by this…
NDIC To Revoke Licences Of 37 Weak Microfinance Banks
THE Nigeria Deposit Insurance Corporation (NDIC), is set to revoke licences of 37 microfinance banks (MFBs), due to their inability to meet necessary regulatory conditions…
A review of Medicine and Literature Without Borders: Health and Social Justice in the Writings…
Full text of lecture delivered by Chief Obafemi Awolowo at the First Lecture in the…
IHR stated that information at its disposal showed that almost everyone involved in the airlift…
"We wish to categorically state that the statement under reference is false, unfounded, and a…
The statement read in part, "The so-called glitch—as curious and suspicious as it may be—is…
According to the statement, the recent fieldwork by INEC in the Warri Federal Constituency accurately…
This website uses cookies.