14 December 2012

Nigeria: UBA Shareholders to Get Dividends From Three New Companies

Shareholders of United Bank for Africa (UBA) Plc will be recieveing dividends from three companies after they approved the internal restructuring and reorganisation of the capital of the Bank and its members in compliance with the new banking model.

In addition to their shareholding in the banking entity, shareholders of UBA Plc would also be partakers in the dividend payout of UBA Capital Plc, Africa Prudential Registrars Plc and Afriland Properties Plc.

The shareholders of the bank had at a "Court Ordered Meeting" held in Lagos yesterday, approved the new structure of the bank in order to comply with the Central Bank of Nigeria (CBN)'s Regulation on the Scope of Banking Activities and Ancillary Matters, which repealed the universal banking model under which Nigerian banks hitherto operated.

Under the new arrangement, the divested non-commercial banking businesses, with the exception of Africa Prudential Registrars and Afriland Properties that will be held directly by shareholders, will be consolidated within UBA Capital.

The Group Managing Director and Chief Executive of the bank Philips Odozua while speaking at the meeting explained that "under the new structure, all non-comercial banking businesses with the exception of Afriland Properties Plc ad Africa Prudential Registrars Plc shall be consolidated under UBA Capital Plc.

"In addition, Afriland Properties and Africa Prudential Registrars will be spun off to existing shareholders as stand-alone entities."

With the new structure, shareholders of the bank will for every 33 shares held in UBA, get one ordinary share each in both Afriland Properties and Africa Prudential Registrars as well as four ordinary shares in UBA Capital.

He further revealed that UBA Capital and Africa Prudential would be listed on the Nigerian Stock Exchange in the first quarter of next year while Afriland Properties would be listed later.

Chairman of the Bank, Chief Israel Ogbue while listing the benefits of the proposed structure said it would enhance UBA's corporate governance practices as there will be dedicated board and management focus on the core business of commercial banking.

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