TUE, AUG 04 2020-theG&BJournal– The board of directors of UAC of Nigeria PLC (UAC) have signed a binding agreement with Custodian Investment PLC that will allow Custodian to buy 51% equity interest in UACN Property Development Company PLC’s (UPDC) from UAC.
UAC said in a statement Monday that the deal marks the beginning of a partnership between Custodian and UAC that will achieve both companies’ respective objectives in the real estate industry.
‘’It also marks a significant milestone aligned with UAC’s strategy to focus on its core businesses,’’ UAC said.
The deal involves the sale of 9,465,584,668 UPDC ordinary shares held by UAC, representing 51% of UPDC’s issued share capital, to Custodian.
According to UAC, ‘’the shares will be sold in two tranches- Initial sale of 946,558,467 shares, representing 5.10% of the issued share capital of UPDC, on execution of binding transaction agreements and subsequent sale of 8,519,026,201 shares, representing 45.90% of the issued share capital of UPDC upon receipt of requisite approvals.’’
Wole Oshin, Group Managing Director of Custodian Investment PLC, said: “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.’’
Completion of the sale is subject to regulatory approvals from The Nigerian Stock Exchange and the Federal Competition and Consumer Protection Commission.
Folasope Aiyesimoju, Group Managing Director of UAC, described the transaction as a significant step towards achieving UAC’s objectives for UPDC.
‘’The objective was to achieve sustainable positive financial performance from our existing operations and enable management focus on businesses that align with our strategy, he said.