Custodian Investment Plc says it has obtained an approval from the Securities and Exchange Commission (SEC) to make a mandatory takeover offer (MTO) of minority shareholders of UACN Property Development Company Plc (UPDC).
This is contained in a notice signed by Adeyinka Jafojo, Custodian Investment secretary, and sent to the Nigerian Exchange Limited (NGX) on Monday.
According to the statement, approval to proceed with an MTO was granted by the regulatory body on May 18, 2021.
Custodian said the MTO offer to minority shareholders of UPDC will involve the purchase of up to 34,415,332 ordinary shares of 50 kobo each, at a price of 90 kobo per share.
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“The Qualification Date for the Offer will be May 14, 2021, and Shareholders whose names appear on the Register of Members as of the date, other than UAC of Nigeria Plc and Custodian Investment Plc are eligible to participate,” the statement read.
“The Offer is expected to open on May 31, 2021, and close on July 2, 2021.”
In August 2020, Custodian and UAC of Nigeria Plc signed a binding agreement for the investment company to purchase a 51 percent equity interest in UPDC.
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UPDC, in a notification sent to NGX on April 19, 2021, announced that it has been authorised to enter into a shareholder loan agreement with Custodian and UAC for the discharge of its outstanding debt obligations.
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