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By Obinna Chima
Capital market operators have also advised other stakeholders in the financial industry to support the proposed recapitalisation of Union Bank of Nigeria (UBN) Plc.
Some stockbrokers, investment advisers and fund managers, who spoke after an exhaustive presentation on the recapitalisation of the bank by its management, said the choice of core investors and fair valuation have locked in significant values into Union Bank in the immediate and distant future.
Chairman, Association of Stockbroking Houses of Nigeria (ASHON), Mr. Rasheed Yusuf, said that stockbrokers have huge shareholding interests in Union Bank and would not want the rescued bank to be nationalised. He assured that the body of capital market operators would support the success of its recapitalisation.
He said that the choice of a group of reputable international investors with requisite technical know-how and capital to drive the performance of the bank has reassured stockbrokers that their investments would soon witness notable improvement.
“Knowing who the core investors are is very key, because we are not just looking at what we will get now but also let’s say two years and beyond. The core investors are institutions well-grounded in the financial industry, they will not just come with money but also bring know-how and experience,” Yusuf said.
Under the recapitalisation deal, Union Bank would receive about N76 billion ($500 million) equity capital and N30 billion ($200 million) Tier 2 capital from a consortium of international investors to retain its nearly century-old brand and regain its competitive verve as one of the strongest and reliable banks in Nigeria. African Capital Alliance (ACA) is leading other partners in the deal.
“We will do all to support you. Anything that would turnaround our fortune, we will support it. What you have presented to us keep our hopes alive,” Yusuf said.
UBN’s extra-ordinary general meeting is scheduled to hold this Friday September 30.
Also speaking on the Union Bank recapitalisation, Chief Executive Officer, Anchoria Investment and Securities Limited, Chief Olusola Dada, said the fact that the fact that Union Bank will retain its brand and the reputation of the core investors would make him to support the bank.