In a notification to the
The deal would involve the sale of sale of 9,465,584,668 UPDC ordinary shares held by UAC, representing 51 per cent of UPDC's issued share capital, to Custodian. The shares would be sold in two tranches, that 946,558,467 shares and 8,519,026,201 shares.
Commenting on the partnership, Oshin said: "We at Custodian are excited about the possibilities arising from this partnership with UAC which provides multiple levers for value creation. The rationale for the transaction is that Custodian and UAC share the view that their ambitions for capturing opportunity in the real estate industry will be better achieved working in partnership."
UPDC is one of
Also commenting, Group Managing Director of UACN, Folasope Aiyesimoju, said: "The transaction is a significant step in achieving our objectives for UPDC .In 2018, the board and management of UAC embarked on a strategic review to evaluate the performance of the company and its subsidiaries.
"The objective was to achieve sustainable positive financial performance from our existing operations and enable management focus on businesses that align with our strategy. In reviewing UPDC, the board weighed the long-term opportunities in the Nigerian real estate sector against the fundamental differences between the cash flow profile and capital needs of UPDC and those of the other entities in UAC's portfolio."
Following its review, the board concluded that it would be in the best interest of UAC to exit its interest in the real estate sector, allowing UPDC to operate as a standalone legal entity, free to source appropriately structured capital and to unlock value for its shareholders.
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