LAGOS- Union Bank Nigeria Plc has announced the indefinite suspension of their N300.6 billion hybrid public offer and rights issue to the investing public.
The Group Managing Director of Union Bank, Mr. Barth Ebong, said that the suspension was due to the prevailing price losses and the low perception of investors on the market.
Union Bank had prior to the equity price losses scheduled to float 1.117 billion shares at N35 per share through rights issue and another 7.3 billion shares at N36 per share to the investing public.
The bank had planned to channel the funds into information technology, branch expansion, infrastructure financing and private public partnership schemes.
Fielding questions from newsmen, Ebong said that the board and management of the bank were currently re-strategising to meet the bank’s financial needs, which necessitated the suspension of the offer.
Ebong, who did not give details of the strategies, however, said: “the most critical issue now remains creating value for their investors and the protection of the bank.”
“The public offer suspension is not only necessary, but prudent to enable us access the current capital market depression and strategies on the best way to raise funds within and outside the Nigerian Stock Exchange.
|
