UAC of Nigeria Plc (UAC, NGX: UACN) has released the details of the unbundling of 649,392,661 units of UPDC Real Estate Investment Trust (NGX: UPDCREIT) received by the company on 31 December 2020.
Recall that in 2020, UAC reduced its ownership in UPDC PLC (UPDC), its real estate business, from 93.86% to 42.85% following the sale of a 51% stake in UPDC to Custodian Investment Plc.
Also, in 2020, UPDC embarked on a process of unbundling its holdings in UPDC Real Estate Investment Trust (UPDC REIT), to all its shareholders, thus UAC of Nigeria, as a shareholder of UPDC, received 649,392,661 units of UPDC REIT.
UAC of Nigeria Board of Directors decided to transfer its UPDC REIT units to eligible UAC shareholders, pro-rata to their shareholding in UAC, based on the allocation ratio of 0.2254.
The allocation ratio was determined by dividing the Scheme Units by the UAC Shares as at the Effective Date, according to UAC.
Keys dates
- Court-Ordered Meeting of the shareholders of UAC: 20 September 2021
- Last trading day to qualify for the Scheme (Eligibility Date): 8 November 2021
- Credit the CSCS accounts of the Eligible Shareholders: 18 November 2021
If the Scheme is approved and when it is implemented, UAC’s shareholders will hold UPDC REIT units in addition to their existing shares in UAC, and UAC will cease to be a unitholder in UPDC REIT.
As a consequence of the Scheme, UAC will implement a capital reduction under Section 131 of CAMA. The Company’s share capital account shall be reduced by the sum of N3,896,355,966, being the value of the transferred units through the reduction of its share premium account, according to the document.
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UPDC REIT is a close-ended property fund with underlying assets comprising a diversified portfolio of commercial and residential real estate assets (six major investment properties located in Lagos and Abuja).
The equity price of UAC of Nigeria Plc gained 9.57% to close at N11.45 per share on Friday, while UPDCREIT closed flat at N5.60 per share.
Expected timetable of principal events:
- Obtain order of the Court convening the Scheme Meeting: 23 July 2021
- Publish Notice of Court-Ordered Meeting in two national newspapers: 20 August 2021
- Last date for lodging Proxy Forms for the Court-Ordered Meeting: 17 September 2021
- Court-Ordered Meeting of the shareholders of UAC: 20 September 2021
- File resolutions obtained at the Court-Ordered Meeting with the CAC 21 September 2021 “
- Obtain the SEC’s formal approval of the Scheme: 20 October 2021
- Obtain Court Sanction of the Scheme: 4 November 2021
- File CTC of Court Sanction with the SEC: 5 November 2021
- Last trading day to qualify for the Scheme (Eligibility Date): 8 November 2021
- Register CTC of Court Sanction at the CAC (Effective Date): 11 November 2021
- Publish copy of Court Sanction in two national newspapers: 12 November 2021
- Credit the CSCS accounts of the Eligible Shareholders: 18 November 2021
- File summary report with SEC: 22 November 2021
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
