September 11, 2019/Cowry Asset
Recently, the Boards of Directors of UAC of Nigeria Plc (“UAC”) and UACN Property and Development Company Plc (“UPDC” or the “Company”) (collectively the “Boards”, individually the “Board”) notified The Nigerian Stock Exchange, Securities and Exchange Commission (“NSE”), their Shareholders and the investing community of their proposed strategic initiatives involving a recapitalization and restructuring of UPDC. Upon completion of the deal, we expect the share price of UACN to further increase, having risen by 34.44% to N6.05 as at Wednesday, September 11, 2019. Also, we do not see any possible dilution of shareholders’ stake in UAC despite the rights issue by UPDC as the 64% rights (N10.21 billion) to be taken up by UAC will fully be settled with the N15.84 billion intercompany loan to UPDC.
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