SEC approves UBA's rights issue

SEC approves UBA's rights issue

The Securities and Exchange Commission (SEC) on Monday approved the proposed rights issue of N13 billion for existing shareholders of UBA Plc.

Mr Obi Adindu, Communications Adviser to SEC Director-General, who confirmed the approval said that the rights issue opened on Dec. 29.

Adindu said that the commission also approved UBA’s application for a bond issue that would commence at a later date.

He said that the approval was granted because the bank satisfied all regulatory processes.

A breakdown of the rights issue showed that it would be one new share for every 10 shares held by existing shareholders at N4 per share.

The bank had in October announced plans to raise Tier 1 Capital by way of a rights issue to boost its diversification strategies across Africa.

In a public announcement signed by the bank’s Secretary, Mr Bili Odum, the bank said it had the approval of shareholders and board resolutions to raise additional capital by various means.

The proceeds of the offer, according to the bank, will boost UBA’s highly diversified businesses across Africa.

Adindu also said that the commission was yet to approve Access Bank's application for rights issue of N68 billion.

He said that Access Bank's application had gone through second stage and would likely be approved this week.

According to him, some unspecified issues raised by the bank's minority shareholders led to further scrutiny of the banks application to avoid short-changing.

Adindu said that the commission had reconciled the issue, noting that the bank's application was in consideration for immediate approval.

"All the issues have been addressed and the approval will be granted any moment from now," he said.