Unity Bank Nigeria Rights Issue

By | June 29, 2017

Unity Bank Nigeria Rights Issue

Unity Bank Nigeria Rights Issue

Unity Bank Plc has announced the opening of its N40bn Rights Issue/Private placement aimed at increasing the capital base of the Bank.

This was made known at the end of its Completion Board Meeting which held yesterday at the Eko Hotel and Suites, Victoria Island, Lagos. Present at the meeting were representatives of the NDIC, Auditors and Solicitors to the Bank, Stockbrokers and all other parties to the Rights.

The event represents the final stage to the commencement of the rights Issue and industry watchers expect the Rights Offer by the Bank to commence in a couple of days.

Speaking after the Meeting Managing Director/CEO of the Bank, Mr. Henry James Semenitari said the capital raising exercise is to position the Bank for better service delivery and greater profitability.

The Acceptance List for the Rights Issue for existing shareholders opens on May 12, 2014 and closes on June 18, 2014 the Bank has said. It is for 38,446,689,710 Ordinary Shares of 50 kobo each at N.50 per share for every ordinary share held as at December 16, 2013.

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This will be followed by a Private Placement for a further 40,000,000,000 ordinary shares of 50 kobo each at N.50 per share which opens on June 20, 2014 and closes on June 23, 2014.

The Bank had just last week declared a Pre-Tax profit of 26%, an increase in Gross earnings and Total Operating Income as well as a reduction in Total Operating Expenses of 8.5% in its unaudited Financial Report submitted to the stock exchange.

The submitted financial report was preceded by the Bank’s successful recertification to the global Payment Card Industry Data Security Standards (PCI DSS) which is an annual exercise that must be completed by all Banks who have attained the Certification.

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Mr. Semenitari said, “The funds to be raised will be judiciously utilized to improve our processes, procedure and people. The Banks Q1 report is already indicative of the improvements and is just an indication of the good turn of results.”

The Bank is commencing on the exercise following the approval given to the Management by its shareholders at an Extra-Ordinary General meeting held on December 23, 2013 to raise additional capital through a Rights Issue.

The meeting which had in attendance representatives from various regulatory bodies marks the formal commencement of the exercise.

Release date: May 5, 2014