UPDC Undergoing a Restructuring of Its Facility Management Division

UPDC Undergoing a Restructuring of Its Facility Management Division

UACN Property Development Company Plc (UPDC) in a note to the Nigeria Stock Exchange (NSE) disclosed that it is undergoing a restructuring of its facility management division. 

The Business will be transferred to First Choice Facility Management Company Limited, a wholly-owned subsidiary of UPDC via an Asset and Business Transfer Agreement.

The property division of UAC in Nigeria made this disclosure in compliance with Rule 17.2(A). Rules on Information Disclosure and Reporting, Rulebook of The Exchange (Issuers’ Rules).

Recently, the UAC of Nigeria (UACN) Plc commenced the divestment of its 51% majority equity stake in UACN Property Development Company with the transfer of the first tranche of the shares to Custodian Investment Plc.

In August 2020, Custodian Investment and UACN had signed a binding agreement on the divestment of UACN’s 51% majority equity stake in UPDC to Custodian Investment. The transaction included the sale of 9.47 billion ordinary shares of UPDC held by UACN, representing 51% of UPDC’s issued share capital to Custodian.

Under the agreement, the shares sale will be transferred in two tranches with the initial sale of 946.56 million shares, representing 5.10 per cent of the issued share capital of UPDC, on the execution of binding transaction agreements. Then, the subsequent sale of 8.52 billion shares, representing 45.90 per cent of the issued share capital of UPDC upon receipt of requisite approvals.

Regulatory documents at the weekend indicated that the transfer of the initial 946.56 million ordinary shares of 50 kobo each has been concluded at a price of 70 kobo per share. The cross deal for the transfer was struck on September 1, 2020, as an off-market deal through the negotiated trade window of the Nigerian Stock Exchange (NSE).