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2017 Rights Issue

Union Bank’s N49.7 billion Rights Issue is open for subscription between September 20th and October 30th 2017. The Bank is offering N12.1 billion ordinary shares of 50 kobo each at N4.10 per share on the basis of five (5) new shares for every seven (7) shares held as August 21, 2017.

The Rights Issue is critical to our short to medium term business objectives. The capital raised from the Rights Issue will support our strategy to accelerate business growth and position Union Bank as a leading commercial bank in Nigeria.

For enquiries, please contact any of the Issuing Houses, any Union Bank branch nationwide or the Registrars:
Address: GTL Registrars, 274 Murtala Muhammed Way, Yaba, Lagos
Telephone: +234-(0)1-2917747, +234-(0)1-2793160-2, +234-8159594273, +234-8159594260, +234-8159594325, +234-8159592984

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Frequently Asked Questions

In December 2016, UBN obtained shareholder and board approvals to raise up to ₦50 billion tier 1 capital via a Rights Issue. In August 2017, UBN secured all regulatory approvals from the Nigerian Stock Exchange (NSE) and Securities & Exchange Commission (SEC). Following regulatory approvals, the offer is set to open for subscription on Wednesday September 20, 2017.
This page aims to address frequently asked questions from stakeholders including shareholders, equity analysts, the media, customers and others.

Why are we raising capital?

Banks raise capital periodically to support growth – in fact, a number of Nigerian Banks have successfully raised capital in the past 24 months. Our capital raise will better position us to accelerate our growth and deliver our ambition to be a top tier bank by 2020+. Furthermore, an increased capital base allows us further invest in and improve our operations, strengthen our capital position and take advantage of any opportunities that may emerge in the short, medium and long term.

How much are we raising via the Rights Issue?

We have obtained all the necessary approvals to raise N49.7 billion in equity via the rights issue.

What is the offer price?

We are offering 12.1 billion ordinary shares of N0.50 each which will be available at N4.10 per share, on the basis of five new shares for every seven shares held as at August 21, 2017.

What is the offer period?

The offer opens September 20 and closes on October 30, 2017. Thus, the offer will open for a period of 28 working days.

What will the proceeds from the Rights Issue be used for?

The proceeds from the rights issue will be used for working capital and enhancement of the Bank’s regulatory capital adequacy. It will also be used for investments in technology, innovation and digitalization and investment in future touch points to drive service delivery. 

Who are the issuing houses for the Right Issue?

Chapel Hill Advisory Partners Limited is the lead issuing house while Stanbic IBTC Capital Limited and FSDH Merchant Bank Limited are the joint issuing houses.

Who are the stockbrokers and receiving banks for the transaction?

Chapel Hill Denham Securities Limited is the lead stockbroker. APT Securities and Funds Limited, FCSL Asset Management, FSDH Securities Limited and Stanbic IBTC Stockbrokers Limited are joint stockbrokers. The receiving banks include Diamond Bank Plc and Stanbic IBTC Bank.

Who can participate in the Rights Issue?

The Rights Issue is open to all Union Bank shareholders, therefore, if you are an existing shareholder, you can participate in the Rights Issue. The qualification date is August 21, 2017. Non-shareholders may be able to buy rights traded by existing shareholders in the event that they do not take up their rights. Such rights would be traded on the NSE as such you may contact your stockbroker for further information.

What options do shareholders have during the offer period?

Shareholders may choose to accept their full provisional allocations on the basis for 5 ordinary shares for every 7 ordinary shares held. By taking up their rights in full, they can maintain their existing percentage holding in the company. Alternatively, shareholders can apply for additional rights, renounce and / or trade their rights on the NSE partially or in full. 

If shareholders wish to trade in rights, they need to contact their stockbroker who will guide them regarding payment and the procedure for trading Union Bank’s Rights.

Can shareholders apply for additional rights offer shares over and above their entitlement?

Shareholders can apply for additional rights offer shares over and above their entitlement. Should there be excess rights offer shares available for allocation, these will be allocated to applicants who have paid for additional shares on a pro-rata (equal) basis in line with the SEC Rules and Regulations.

What will be done with surplus subscription monies received during the offer?

If any subscription for additional shares is not accepted or is accepted for fewer shares than the number applied for, such monies shall be returned by electronic transfer, or where the investor has not provided account details, a cheque for the value of the additional shares not accepted will be returned by registered post within 5 (five) working days after the date of allotment.

How do shareholders subscribe to the Rights Issue?

Subscription is done via the acceptance/renunciation form on the last page of the Rights Circular (this can be downloaded from our website www.unionbankng.com or our registrars’ website http://www.gtlregistrars.com if shareholders are yet to receive them from our registrars).

Shareholders are required to complete the form and submit at any Union Bank branch nation-wide or with any of the receiving agents listed on page 63 of the Rights Circular during the subscription period only. 

Is there a deadline for the receipt of payment?

The deadline for submission of forms and receipt of payment is on the closing date of the offer period which is October 30, 2017. Payment is to be made into any of the receiving agents’ accounts. If payment is not received by the deadline, the provisional allotment will be deemed to have been declined and will be cancelled.

Who do non-shareholders contact in the event that they are interested in taking up rights not followed by shareholders?

Kindly sign up here and a member of the transaction team will be in touch for next steps in the event that an opportunity arises.

Who can I contact if I have any additional questions?

Kindly send an e-mail to investorrelations@unionbankng.com 

Frequently Asked Questions

In December 2016, UBN obtained shareholder and board approvals to raise up to ₦50 billion tier 1 capital via a Rights Issue. In August 2017, UBN secured all regulatory approvals from the Nigerian Stock Exchange (NSE) and Securities & Exchange Commission (SEC). Following regulatory approvals, the offer is set to open for subscription on Wednesday September 20, 2017.
This page aims to address frequently asked questions from stakeholders including shareholders, equity analysts, the media, customers and others.

Why are we raising capital?

Banks raise capital periodically to support growth – in fact, a number of Nigerian Banks have successfully raised capital in the past 24 months. Our capital raise will better position us to accelerate our growth and deliver our ambition to be a top tier bank by 2020+. Furthermore, an increased capital base allows us further invest in and improve our operations, strengthen our capital position and take advantage of any opportunities that may emerge in the short, medium and long term.

How much are we raising via the Rights Issue?

We have obtained all the necessary approvals to raise N49.7 billion in equity via the rights issue.

What is the offer price?

We are offering 12.1 billion ordinary shares of N0.50 each which will be available at N4.10 per share, on the basis of five new shares for every seven shares held as at August 21, 2017.

What is the offer period?

The offer opens September 20 and closes on October 30, 2017. Thus, the offer will open for a period of 28 working days.

What will the proceeds from the Rights Issue be used for?

The proceeds from the rights issue will be used for working capital and enhancement of the Bank’s regulatory capital adequacy. It will also be used for investments in technology, innovation and digitalization and investment in future touch points to drive service delivery. 

Who are the issuing houses for the Right Issue?

Chapel Hill Advisory Partners Limited is the lead issuing house while Stanbic IBTC Capital Limited and FSDH Merchant Bank Limited are the joint issuing houses.

Who are the stockbrokers and receiving banks for the transaction?

Chapel Hill Denham Securities Limited is the lead stockbroker. APT Securities and Funds Limited, FCSL Asset Management, FSDH Securities Limited and Stanbic IBTC Stockbrokers Limited are joint stockbrokers. The receiving banks include Diamond Bank Plc and Stanbic IBTC Bank.

Who can participate in the Rights Issue?

The Rights Issue is open to all Union Bank shareholders, therefore, if you are an existing shareholder, you can participate in the Rights Issue. The qualification date is August 21, 2017. Non-shareholders may be able to buy rights traded by existing shareholders in the event that they do not take up their rights. Such rights would be traded on the NSE as such you may contact your stockbroker for further information.

What options do shareholders have during the offer period?

Shareholders may choose to accept their full provisional allocations on the basis for 5 ordinary shares for every 7 ordinary shares held. By taking up their rights in full, they can maintain their existing percentage holding in the company. Alternatively, shareholders can apply for additional rights, renounce and / or trade their rights on the NSE partially or in full. 

If shareholders wish to trade in rights, they need to contact their stockbroker who will guide them regarding payment and the procedure for trading Union Bank’s Rights.

Can shareholders apply for additional rights offer shares over and above their entitlement?

Shareholders can apply for additional rights offer shares over and above their entitlement. Should there be excess rights offer shares available for allocation, these will be allocated to applicants who have paid for additional shares on a pro-rata (equal) basis in line with the SEC Rules and Regulations.

What will be done with surplus subscription monies received during the offer?

If any subscription for additional shares is not accepted or is accepted for fewer shares than the number applied for, such monies shall be returned by electronic transfer, or where the investor has not provided account details, a cheque for the value of the additional shares not accepted will be returned by registered post within 5 (five) working days after the date of allotment.

How do shareholders subscribe to the Rights Issue?

Subscription is done via the acceptance/renunciation form on the last page of the Rights Circular (this can be downloaded from our website www.unionbankng.com or our registrars’ website http://www.gtlregistrars.com if shareholders are yet to receive them from our registrars).

Shareholders are required to complete the form and submit at any Union Bank branch nation-wide or with any of the receiving agents listed on page 63 of the Rights Circular during the subscription period only. 

Is there a deadline for the receipt of payment?

The deadline for submission of forms and receipt of payment is on the closing date of the offer period which is October 30, 2017. Payment is to be made into any of the receiving agents’ accounts. If payment is not received by the deadline, the provisional allotment will be deemed to have been declined and will be cancelled.

Who do non-shareholders contact in the event that they are interested in taking up rights not followed by shareholders?

Kindly sign up here and a member of the transaction team will be in touch for next steps in the event that an opportunity arises.

Who can I contact if I have any additional questions?

Kindly send an e-mail to investorrelations@unionbankng.com 

Resources

Rights Circular
Rights Issue Presentation