In a notice released to the Nigerian Stock Exchange (NSE) today, UACN Plc has announced the opening of its rights issue. 960,432,193 ordinary shares of 50 Kobo each at the offer price of N16 per share on the basis of one (1) new ordinary shares for every two (2) ordinary shares held as at 19 October 2017 will be opened for subscription. Acceptance list opens: Wednesday, 15 November 2017 Acceptance list closes: Friday, 22 December 2017.
What will the proceeds be used for ?
Details from the rights issue circular released by the company show it expects to raise a total of N15 billion after deducting costs related to the offer. N5 billion will be injected into Grand Cereals Limited as equity, in addition to a N3.5 billion company loan. UACN also intends to allocate N4 billion as working capital support to both Livestock Feeds Plc and Grand Cereals Plc. N2.5 billion from the rights issue will be reserved for new business development.
Here is a copy of the rights issue circular
UAC of Nigeria is a conglomerate, operating in the food and beverage, real estate, paints and logistics sectors of the economy, through its subsidiaries. The company was incorporated on April 22, 1931 as a wholly-owned subsidiary of the United Africa Company Limited (a subsidiary of Unilever), which later became UAC International. The Company’s name was changed to United Africa Company (Nigeria) Limited on 23rd July 1943, and became UAC of Nigeria PLC in 1991. It was listed on the NSE in 1974. UACN Plc shares closed at N19.10 in yesterday’s trading session on the NSE. Year to date, the shares are 13.62%.