As reports surfaced in the newspapers that Unity Bank was planning a combination of a Share Reconstruction, Rights Issue and increase in Share Capital I began a quest to understand what exactly the bank plans to achieve. Not sooner had I started that I found myself in a midst of confusion. According to reports Unity Bank had “endorsed that the 38,446,689,710 issued and fully paid ordinary shares of 50k in the capital of the bank be reconstructed into 9.61 billion ordinary shares of 50k”. This implies their current Issued Share Capital is N19,223,344,855.
However, Unity Bank’s 2012 Annual Report showed in its balance sheet that it had 34,951,536,000 ordinary shares of 50kobo each which translates to a share capital of N17,475,768,00. This is a whopping difference of N1,757,576,855 share capital or 3,515,153,710 ordinary shares.
So where is this confusion coming from? Even Bloomberg records the Issued shares as 38,446,689,710 and not 34,951,536,000. In addition, in page 42 of the company’s annual report it also listed total shares as 38,446,689,710 whist in page 4 as well as it notes to accounts it listed it as 34,951,536,000. So what exactly are we to believe?? I even checked the most recently released Interim result of the company (2013 9 months) which showed Issued Capital as N17,475,768,00.
It is particularly important that the bank clarifies this anomaly to avoid this sort of confusion especially as they embark on a scheme of share reconstruction. I will be worried if I were a shareholder.
Ugometrics Portfolio does not own any shares in Unity Bank Plc.