Written on 22/05/2013, 01:01 by
Mr. Achebe’s body arrived at Abuja without much of the pageantry earlier envisaged.
Hundreds of people were at the Nnamdi Azikiwe International...108
Written on 22/05/2013, 00:48 by
Both arms of the National Assembly on Tuesday ratified the emergency rule imposed on three northern sates of Borno, Yobe and Adamawa with the two chambers...117
Written on 22/05/2013, 00:40 by
As celebrated author, Chinua Achebe’s final burial rites hold this week, Nobel laureate Wole Soyinka in this exclusive interview with Sahara Reporters...166
Written on 22/05/2013, 00:29 by
The Northern Elders Forum (NEF) will file a complaint with the International Court of Justice (ICJ) accusing Nigeria’s government of human rights...424
Written on 22/05/2013, 00:24 by
Nigeria has announced it will release a number of Boko Haram members, including all women, in what it called a peace bid as its military waged operation...Written on 21/05/2013, 10:27 by
Nigeria’s poverty rate should be falling faster given its economic growth this decade, a senior official of the International Monetary Fund (IMF) said...Written on 21/05/2013, 10:16 by
About 120 militant Islamists have been arrested in Nigeria's north-eastern city of Maiduguri, as they were organising the burial of a commander, an army...118
Written on 21/05/2013, 10:09 by
Nigeria’s military is chasing Islamist fighters as they flee to the borders of Chad and Niger from the northeast, where President Goodluck Jonathan has...Written on 20/05/2013, 01:14 by
A WAR of words is now raging between two frontline Ijaw sons, Prof. Tam David-West and Alhaji Mujahid Asari-Dokubo, over comments on President Goodluck...109
The New Union Bank Transaction – Matters Arising
The news obtained from Thisday newspaper yesterday has attracted a number of interests from investors.
Going through the various commentaries and newspaper publications, we have published some of the questions sent in for which further clarification is sought.
Questions Arising Therefrom:
1. How much is outstanding in the bail-out fund given to Union Bank by the CBN?
2. How much has AMCON pumped into Union Bank and in exchange for what?
3. The 19% equity holding being given to AMCON is in exchange for what?
4. If the NSE cancelled the existing 13,510,000,000 shares and 2,533,125,000 new shares are listed and going by the new thinking represent 15% of the new Union Bank, how did the management arrived at 1,407,291,667 as right issue with a claim of 6% to the new Union Bank?
5. If according to the statement credited to management the right offer price of N6.81 is at a discount of N4.72, that technically means the share price of the new Union Bank is N11.53, what unit price was then used for the 60% & 19% equity stake given to Union Global Partners Limited and AMCON?6. If Union Global Partners Limited are to provide USD500M for 60% equity stake in the new Union Bank, what nominal value of shares is this 60% equity holding?
7. What are the terms of the USD250M Tier 2 capital being injected by Union Global Partners Limited?
8. Why is the purpose of the pre-emptive caveat "there is also a standby investment arrangement to be provided by AMCON to cover any shortfall in the equity investment amount by Union Global Partners within 90 days"?
9. What is the minimum fresh cash injection Union Global Partners Limited MUST put down in order to be a part of this transaction?
Proshare Nigeria Asks - This email address is being protected from spambots. You need JavaScript enabled to view it.
References:
- 1. Recapitalisation: Union Bank Rights Issue Opens This Week
- 2. COMMENT - Issues in Banks' Recapitalisation EGMs
- 3. BREAKING NEWS: Union Bank meets regulatory deadline on capital adequacy
