UACN Property Development Company Plc has announced the sale of 51 per cent stake to Custodian Investment Plc.
The company said in a statement to the Nigerian Stock Exchange that its board of directors signed a binding agreement with Custodian Investment for the purchase of 51 per cent equity in UACN Property Development Company.
According to the statement, the agreement marked the beginning of a partnership between Custodian and UAC that would achieve both companies’ respective objectives in the real estate industry.
The agreement, it added, marks a significant milestone aligned with UAC’s strategy to focus on its core businesses, and the shares would be sold in two tranches.
“The initial sale of 946,558,467 shares, representing 51 per cent of the issued share capital of UPDC, would be made on execution of binding transaction agreements, while a subsequent sale of 8,519,026,201 shares, representing 45.90 per cent of the issued share capital of UPDC, would be made upon receipt of requisite approvals.
“Completion of the sale is subject to regulatory approvals from the Nigerian Stock Exchange and the Federal Competition and Consumer Protection Commission,” it read in part.
The Group Managing Director, Custodian Investment, Wole Oshin, said the company was excited about the possibilities arising from the partnership with UAC, which would provide multiple levers for value creation.
He stated that the rationale for the transaction was that Custodian and UAC shared the view that their ambitions for capturing opportunity in the real estate industry would be better achieved working in partnership.
The GMD of UAC, Folasope Aiyesimoju, said, “The transaction is a significant step in achieving our objectives for UPDC.
“The board concluded that it will be in the best interest of UAC to exit its interest in the real estate sector, allowing UPDC to operate as a stand-alone legal entity, free to source appropriately structured capital and to unlock value for its shareholders.”
