United Bank of Africa (UBA) has announced its closed period for the preparation of its Audited Financial Statements and Reports for the year ended December 31, 2019.
UBA, in a statement released on the Nigerian Stock Exchange (NSE), stated that its closed period began on January 12, 2020. Though the bank didn’t disclose when the closed period will end, it stated that the UBA Board of Directors would meet on Monday, January 27, 2020, to finalise the financial year-end report for 2019.
“The Board of Directors of United Bank for Africa Plc is scheduled to meet in Lagos, 09 am on Monday, January 27, 2020, to consider, amongst other matters, the Audited Financial Statements and Reports for the year ended December 31, 2019, as well as proposals for the Final Dividend. The results would only be published after relevant regulatory approval.”
What this means: With the closed period announced, there will be no trading activity on UBA’s shares, especially by any person discharging managerial role in the company as well as staff and other related persons, which sometimes extends to family and relatives. The closed period bars these individuals in line with the post-listing requirements of NSE for quoted companies.
“Accordingly, no Director, person discharging managerial responsibility, employee with sensitive information, adviser, and consultant of the Bank and their connected persons may directly or indirectly deal in the Securities (Shares and Bonds) of the Bank until 24 hours after the release of the Audited Reports and Financial Statements of the Group for the period ended December 31, 2019, to the Nigerian Stock Exchange.”
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Why the ban? People with financial information of any other quoted companies are banned from trading the shares of the company because they will have privileged information that could influence their trading activities and give them an advantage above other stakeholders or investors. This is considered unfair.
UBA’s restructuring process: The closed period is coming at a time UBA is undergoing restructuring which has seen many workers sacked. The restructuring also led to the bank’s mass recruitment of workers.