Ahead of Planned Sale By UACN, UPDC Seeks Shareholders’ Nod To Transfer REITS Stake

The meeting is coming ahead of the planned sale of the real estate giant to financial services group- Custodian Investment Plc by its parent company, UAC of Nigeria Plc.

The scheme proposes the transfer of its 1,515,501,818 units of the total 1,648,915,293 units held in UPDC Real Estate Investment Trust (UPDC REIT) to the eligible shareholders based on the Allocation Ratio as specified in the Scheme Document.

The court order dated July 15, 2020, scheduld for 1st Floor, UAC House, Lagos, at 10:00am, will also consider and pass the special resolution that in line with the provisions of Section 131 of the Companies & Allied Matters Act (CAMA), the transfer to shareholders of 1,515,501,818 units in UPDC REIT, following which the company’s “share capital account shall be reduced by the sum of ₦4,698,055,636 (the Share Premium Deduction Amount), being the value of the transferred units.”

Arising from the reduction of its share premium account, the Share Premium Deduction Amount shall be transferred into the UPDC REIT Unbundling Liability Account

Should “the market value of the units held by UPDC in the UPDC REIT based on the per

unit price as reflected in the daily official list of The Nigerian Stock Exchange on the Effective Date (as defined in the Scheme Document),” otherwise known as the Final Market Value),” be lower than the Share Premium Deduction Amount, it further proposed that n amount representing the difference between the Final Market “Value and the Share Premium Deduction Amount shall be transferred from the UPDC REIT Unbundling Liability Account into the company’s reserve account or such other account as the board of directors of the company may deem fit and in compliance with applicable laws.”