- Union Bank to sell UK subsidiary
The boards of directors of two of Nigeria’s five largest banks – Zenith Bank International Plc and United Bank for Africa (UBA) Plc – have approved payment of final dividends to shareholders of the banks, sustaining a tradition of paying dividends twice a year.
The boards of the banks also approved the financial statements for the year ended December 31, 2019, raising prospects that the results may be released within the next five weeks ahead of the regulatory deadline of March 30, this year.
The board of Zenith Bank, which met yesterday and the board of UBA, which had met a day earlier, reviewed the three-month fourth quarter results for 2019 and the 12-month full-year results for the year ended December 31, 2019.
Directors of the banks subsequently approved the results and authorised designated directors to sign the results on behalf of the board, a major requirement by financial regulatory authorities.
In separate regulatory filing at the Nigerian Stock Exchange (NSE), the boards of the banks stated that the approved results would be sent to the Central Bank of Nigeria (CBN) for final regulatory review and approval, following which the results and dividend recommendations will be made available to the public through the NSE.
Under the listing rules at the NSE, quoted companies are required to submit their yearly audited account to the Exchange not later than 90 calendar days after the relevant year end, and published same in at least two national daily newspapers not later than 21 calendar days before the date of the annual general meeting. They are also required to post same on their websites with the web address disclosed in the newspaper publications. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the publication.
Most quoted companies including all banks, major manufacturers, insurers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year. The deadline for the submission of yearly report for the year ended December 31, 2019 is thus Monday March 30, this year.
Zenith Bank had paid interim dividend of 30 kobo from earnings per share of N2.83 for first half 2019.
Meanwhile, Union Bank of Nigeria (UBN) Plc has entered a share sale and purchase agreement to divest its 100 per cent equity stake in its United Kingdom (UK) subsidiary, Union Bank UK (UBUK) Plc.
In a regulatory filing yesterday at the Nigerian Stock Exchange (NSE), the board of Union Bank stated that the sale was in line with the bank’s strategy to streamline its business operations to focus on growth opportunities in Nigeria.
According to the bank, following a competitive bid process, MBU BidCo Limited (MBU), an acquisition vehicle owned by MBU Capital Limited (MBU Capital), was selected as the preferred bidder. The completion of the sale is however still subject to regulatory approvals from the relevant regulatory authorities in Nigeria and the UK.
MBU Capital is an investment management firm founded in 2013 and based in Mayfair, London. MBU Capital has active interests in financial services, healthcare, education, real estate and technology. MBU Capital (UK) LLP is authorised and regulated by the Financial Conduct Authority.
UBN Chief Executive Officer, Emeka Emuwa, said the bank decided that as the banking landscape shifts towards digital and agency banking to drive financial inclusion, the Nigerian market presents robust long-term opportunities for it.
He pointed out that the divestment allows the bank to channel its focus and capital towards mining the Nigerian opportunities fully.
“Through the sale, we are better positioned to deliver greater value to the organisation and its stakeholders as well as continue to build the future of banking in Nigeria. The terms of the sale of UBUK delivers substantial value to our shareholders, while also entrusting its customers and trading partners to a high-quality financial services institution which will work with existing management to deliver a stronger and more profitable entity,” Emuwa said.
Founder and Chief Executive Officer, MBU Capital, Mohammed Iqbal, said the investment group was delighted with the acquisition, describing it as a huge opportunity to build on UBUK’s strengths in international markets to create a new-style bank which is focused on the needs of UK and international SMEs and entrepreneurs.
According to him, many customers are seeking a bank, which truly understands the needs of entrepreneurial, fast-growing businesses.
“We believe that our acquisition and vision for UBUK offers the potential for significant growth for the bank. We look forward to working with our new colleagues at UBUK to continue to service the needs of its clients. We also look forward to sustaining and deepening relationships with UBUK’s existing trading partners,” Iqbal said.
- Media Report