Custodian Investment Plc (NGSE:CUSTODIAN) sign a binding agreement to acquire 51% stake in UACN Property Development Company Plc (NGSE:UAC-PROP) from UAC of Nigeria Plc (NGSE:UACN) on August 3, 2020. Under the terms of agreement, Custodian Investment Plc will acquire 9.5 billion UPDC ordinary shares in two tranches that is initial sale of 946.6 million shares, representing 5.10% of the issued share capital of UPDC, on execution of binding transaction agreements and subsequent sale of 8.5 billion shares of UPDC upon receipt of requisite approvals. Upon completion of the sale, UPDC will cease to be a subsidiary of UAC of Nigeria and will operate as a standalone entity, separate from UAC of Nigeria. Completion of the sale is subject to regulatory approvals from The Nigerian Stock Exchange and the Federal Competition and Consumer Protection Commission. Deconsolidation of a business that has a different cash flow profile and capital needs from the rest of UAC of Nigeria portfolio and Increased management focus on businesses in sectors that align with UAC of Nigeria core strategy along with having Custodian as a strong anchor shareholder in UPDC strengthens UPDC strategically. Custodian completed the acquisition of the initial tranche of 5.1% stake in UPDC of 946,558,467 shares at an initial cost of NGN 666.15 million in September 2020. The acquisition of second tranche is expected to be concluded by November 2020.
Custodian Investment Plc (NGSE:CUSTODIAN) completed the acquisition of 51% stake in UACN Property Development Company Plc (NGSE:UAC-PROP) from UAC of Nigeria Plc (NGSE:UACN) on November 17, 2020.