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UBA Buys Back, Set To Cancel 2.08bn Shares From Its Book

United Bank for Africa Plc, on Tuesday informed investors through the Nigerian Stock Exchange that it has reacquired 2,080,104,955 units or 5.73% of its 36,279,526,322 ordinary shares.
The transfer, which involved no cash consideration of any kind, would enable the bank complete relevant processes to effect the cancellation of the said shares from its shares in issue.
The shares, originally about four billion units, were set aside for the Staff Share Investment Trust Scheme (SSIT) from which the bank’s staff acquired the bank’s shares whenever it was offered by management, up to the point it had 2.08bn unalloted.
According to the group’s statement signed by Bili Odum, Group Company Secretary, the transfer of the unalloted shares from the SSIT “is part of the process of executing the Special Resolution of the shareholders at the annual general meeting held on Friday, April 08, 2016, to cancel the shares.”
The cancellation of the 2.08bn units will reduce UBA’s shares in issue to about 34,199,421,367 units.
While not affecting the stake of current shareholders, the cancellation, nonetheless raises their percentage shareholding.
Significant shareholders of the bank as of year-end December 31, 2016 were as follows: Stanbic Nominees Nigeria Ltd: 11%; UBA Staff Investment Trust Scheme: 7.6%; Consolidated Trust Funds Ltd, 4.7%; The Bank of New York Mellon, 4.4%; Heirs Holding Ltd, 3.4%; STH, 2.6%; Bank of America Merrill Lynch, 2.3%; International Finance Corporation, 1.8%; Poshville Investment Ltd, 1.7%; BGL Securities Ltd/MM, 1.1%.
Following the cancellation, the group’s earnings per share based on which directors recommend dividend payment, and other key parameters would increase for the good of shareholders.

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