Custodian Investment offers to buy shares from UPDC’s shareholders

Custodian Investment Plc has offered to acquire over 34 million shares from the minority shareholders of UPDC Plc.

Custodian Investment is the majority shareholder in the property company and currently holds 9,465,584,668 ordinary shares of 50 kobo each, representing 51 percent of the total issued and paid-up share capital of UPDC.

UPDC, in a statement on Friday, said, “Following its acquisition of the shares, Custodian, pursuant to Part XII of the Investment and Securities Act, 2007 and Rules 445-448 of the Securities and Exchange Commission Rules and Regulations 2013 (as amended) is launching a mandatory take-over offer to acquire up to 34,415,332 ordinary shares at N0.90 per share (representing 3.02 per cent of the total minority shareholding of UPDC).

“Custodian is therefore offering to acquire shares from the minority shareholders of the company, on a voluntary basis, provided that Custodian shall not be required to acquire any shares in excess of such number of shares as would take Custodian’s aggregate interest in UPDC up to a maximum of 51.1 percent of the issued and paid-up share capital of UPDC.

“The Board of Directors of UPDC considers the terms of the offer to be fair and reasonable and that it presents a great opportunity for shareholders to realise liquidity at an attractive valuation. The board recommends the offer to the shareholders, but the extent to which shareholders participate in the offer is a matter for each shareholder to decide individually and will be influenced by their own individual financial and investment objectives.”

UPDC said shareholders should seek independent professional advice for guidance as to whether to transfer their shares pursuant to the offer or not.

It said, “Shareholders should also note that, once transferred, shares may not be disposed of other than in accordance with the terms and conditions of the offer document.

“The board confirms that no officer of the company was paid any compensation for loss of his officer or of any office in connection with the management of the company’s affairs or the affairs of any subsidiary of the company, or as consideration for his or her retirement from any office.”

The board also confirms that the offer is not expected to result in any changes to the operations of UPDC or to the terms and conditions of employment of current employees of UPDC, according to the statement.