Unity Bank shares

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.

Unity Bank equity2 Unity bank equity

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.

3 COMMENTS

  1. your analysis is childish. you think you have uncovered something but if you had any real business sense you will know what happened. your knowledge is just bookish and i feel sorry for your readers.

  2. Sulleman we still dey wait for you on. Something tells us have a management stake in unity bank. For me I have a shareholder stake and dedication I can’t wait for the price to come up so I can exit

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