Custodian Investment to Acquire 9.5bn Shares in UACN Property Company
The management of UAC of Nigeria Plc on Monday announced that they have entered into a binding agreement with Custodian Investment Plc for Custodian to acquire a 51 percent equity interest in UACN Property Development Company Plc (UPDC) from UAC.
In the statement released by the UAC of Nigeria on the Nigerian Stock Exchange, the company said Custodian will acquire 9,465,584,668 UPDC ordinary shares held by UAC, representing 51 percent of UPDC’s issued share capital.
The company further stated that the sale of shares will be done in two tranches.
The first phase includes an initial sale of 946,558,467 shares, representing 5.10 percent of the issued capital of UPDC, on the execution of binding transaction agreements.
This will be followed by a sale of 8,519,026,201 shares, representing 45.90 percent of the issued share cpaital of UPDC upon receipt of requisite approvals.
According to UAC, the agreement marks the start of a new partnership between Custodian and UAC that will achieve both companies’ objectives in the real estate sector. It also marks a significant milestone aligned with UAC’s strategy to focus on its core businesses.
Commenting on the partnership, Wole Oshin, Group Managing Director of Custodian Investment PLC, said: “We at Custodian are excited about the possibilities arising from this partnership with UAC which provides multiple levers for value creation. The rationale for the Transaction is that Custodian and UAC share the view that their ambitions for capturing opportunity in the real estate industry will be better achieved working in partnership.
“UPDC is one of Nigeria’s leading real estate development companies, having completed several landmark residential and commercial developments over the past twenty years. This Transaction will provide Custodian with a platform to capture arising real estate opportunities. It also immediately provides recurring cash flow visibility and attractive yields as a result of its direct exposure to Nigeria’s leading real estate investment trust (“UPDC REIT”) with a track record of profitability and annual dividend distribution which offers a good compliment for our product portfolio.
“We are confident that the recent recapitalisation of UPDC, significant reduction in finance costs, and recently reconstituted leadership have repositioned the company to operate sustainably and capture growth opportunities aimed at increasing stakeholder value going forward.”
Also, commenting on the deal was Folasope Aiyesimoju, Group Managing Director of UAC, Aiyesimoju said: “The Transaction is a significant step in achieving our objectives for UPDC. In 2018, the Board and management of UAC embarked on a strategic review to evaluate the performance of the company and its subsidiaries. The objective was to achieve sustainable positive financial performance from our existing operations and enable management focus on businesses that align with our strategy.
“In reviewing UPDC, the Board weighed the long-term opportunities in the Nigerian real estate sector against the fundamental differences between the cash flow profile and capital needs of UPDC and those of the other entities in UAC’s portfolio. Following its review, the Board concluded that it would be in the best interest of UAC to exit its interest in the real estate sector, allowing UPDC to operate as a standalone legal entity, free to source appropriately structured capital and to unlock value for its shareholders.
“In September 2019, the Boards of Directors of UAC and UPDC jointly announced three significant strategic initiatives aimed at strengthening UPDC and positioning the company to operate as a standalone entity. This included a rights issue to recapitalise the business, plans for UAC to transfer UAC’s equity interest in UPDC pro-rata to UAC’s shareholders (“UPDC Unbundling”), and plans for UPDC to unbundle the UPDC REIT to its shareholders (“UPDC REIT Unbundling”). The ₦16 billion UPDC rights issue was successfully completed in April 2020, proceeds of which were used to reduce borrowing costs and significantly improve UPDC’s capital position.
“In the process of progressing the unbundling initiatives, UAC received a credible offer from Custodian. The terms of the offer compelled the Board to re-evaluate the planned approach to deconsolidate UPDC and influenced the Board’s decision to proceed with the sale of a portion of UAC’s interest in UPDC to Custodian, effectively putting an end to the UPDC Unbundling.
“We are delighted about the positive impact that a strong anchor shareholder like Custodian will have on UPDC and are focused on ensuring a smooth transition.”
FG to Absorb Exited N-power Beneficiaries into New Program
Exited N-power Beneficiaries to Be Absorbed into Another Program
The Federal Government has commenced plans to absorb exited N-power beneficiaries into a new program in an effort to help them eke a living.
Sadiya Umar Farouq, the Minister of Humanitarian Affairs, Disaster Management and Social Development, made the statement at an interactive forum with state focal persons of the National Social Investment Programmes in Abuja.
She said: “As we renew our commitment to the service of humanity, I will like to cease this opportunity to once again state that we have successfully exited Batch A and B of the N-Power beneficiaries in June and July respectively and we are still working towards ensuring a transition plan that will further engage or absorb them into other programmes.”
Sadiya also stated that the selection process of the Batch C N-power application will be thorough and base on merit.
“We have also received over 5 million applications from proposed N-Power Batch C and we are currently in the process of selecting the qualified beneficiaries coming into the programme.
“I assure all the applicants and Nigerians that the selection process will be transparent,” she said.
She added that, “I wish to reiterate that I have given approval for the payment of stipends for the exited beneficiaries of batches A and B up to the month of June 2020 including that of the independent monitors. Also, the final payment of stipend for Batch B is almost ready for transmission to the office of the Accountant General of the Federation for final checks and payment.
The minister urged state coordinators to discharge their duties diligently and not let her down.
“It is against this background that I urge everyone of you to continue to give in your best to ensure the lives of those we are called to serve are made better.
“We must not lose sight of the fact that each one of the vulnerable persons are not mere numbers or statistics but real people with dreams, hopes, aspirations and a desire to live decent lives in peace and safety,” he submitted.
FG Says All Airports Are Now Open for Domestic Flight Operations
All Airports Are Now Open for Domestic Flight Operations Says FG
The Federal Government on Monday said all airports in the country are officially open for domestic flight operations.
This was disclosed by the Minister of Aviation, Hadi Sirika, during the briefing of the Presidential Task Force on COVID-19 on Monday in Abuja.
Hadi, however, noted that operators flying into private-owned airports must know the status of such airports.
Speaking at the PTF Briefing, the minister said there is no need for flight approval within Nigeria again as all airports are now opened for domestic operations.
He said, “All airports in Nigeria are now open for domestic flights, including those that are for private charter operations.
“They (operators) will no longer need approvals from us to operate domestically within government-owned airports. However, for the private airports, operators should check their safety status with the Nigerian Civil Aviation Authority.
“Such airports are Jalingo, Uyo, Asaba, Gombe, Nasarawa, Damaturu, Osubi, etc. So you don’t need any approval from the minister, but you should check the status of these airports with the NCAA.”
Commenting on international chartered flights, the minister said they need approvals to flight out of the country.
He said, “All flights out of the country that are private charter will still need approvals for those kind of flights, including technical stops.
“So with this, it means that the approvals that are sent via the NCAA, NAMA and myself will cease and if there is any change, it will be so advised accordingly.”
Afreximbank, ITFC Partner With ARSO to Facilitate Intra-African Trade
AFREXIMBANK and International Islamic Trade Finance Corporation (ITFC) Partner With ARSO to Facilitate Intra-African Trade in Pharmaceuticals and Medical Devices, under the Umbrella of the AATB Program
The African Export-Import Bank (Afreximbank) and the International Islamic Trade Finance Corporation (ITFC), have partnered with the African Organisation for Standardisation (ARSO), to launch a new Arab-Africa Trade Bridges Program (AATB) initiative called the Harmonisation of Standards for Pharmaceutical and Medical Devices in Africa, aimed at promoting the quality and safety of medicines and medical devices imported or produced on the continent.
Harmonized product standards are critical to the implementation of the African Continental Free Trade Agreement (AfCFTA), ensuring that producers of goods on the continent comply with one shared set of minimum regulatory and customer quality requirements, in turn allowing them to supply the continental market and beyond with goods that meet those standards. The harmonisation of standards also serves to enhance the quality of African manufacturing and boost intra-African and Arab-African trade and investment – one of the AATB’s key objectives.
The initiative, which will be implemented in a phased manner over three years, begins immediately with the harmonisation of standards for pharmaceutical products and medical devices for use in the ongoing COVID-19 pandemic. The second phase will analyse and assess existing international, regional, and national standards for their suitability in meeting the unique challenges faced by African healthcare industries before achieving the 3rd phase, which is the harmonization of the related African Standards and their adoption on the continent.
Commenting on the initiative, ITFC CEO, Eng. Hani Salem Sonbol said, “From a trade development standpoint, harmonizing the standards of pharmaceutical products and medical devices in Africa is a crucial first step in facilitating local production and trade within sector. Such standards provide a necessary baseline from which to regulate the sector more effectively, raising the quality of locally produced life-saving drugs and related products, and ensuring timely access to appropriate and affordable medicines, vaccines, and other health services for those who need them most. It will also act as a catalyst for Africa to benefit from a burgeoning pharmaceutical sector, expanding trade opportunities locally and beyond borders thus creating long term sustainable socio-economic impact on the continent”.
The initiative will also serve to enhance trade and investment within Africa’s healthcare industry by boosting the manufacture of high-quality homegrown products and services – objectives laid out within the AfCFTA.
Welcoming the initiative, Mrs. Kanayo Awani, Afreximbank’s Managing Director of the Intra-African Trade Initiative said, “At a time when the demand for quality medicines and medical devices is increasing, Africa needs to reinforce regional value chains to scale-up the supply of quality medical products. This would also contribute to building the continent’s resilience against pandemics like COVID-19 in the future. Furthermore, leveraging on the African Continental Free Trade Agreement, this joint initiative will also facilitate increased intra-African trade in pharmaceuticals and medical consumables.”
As part of a COVID-19 response, the harmonization of standards will facilitate the development of equivalent technical regulations among African countries. Therefore, distribution of medical supplies and equipment from one country to another can be fast-tracked.
A long-term outcome of the initiative will be the emergence of regional supply chains for pharmaceutical and medical devices, which will foster an ecosystem of innovation, local production and the development of medical products for diseases that are currently neglected.
Commenting on the initiative, ARSO’s Secretary General, Dr Hermogene Nsengimana, said “While on one hand COVID-19 has created social distancing as a new norm, on another hand it has brought Africa together by opening our eyes to the need for industrialisation. Standards circulated by ARSO and other standards organisations related to face masks, and hand sanitizers have been used widely by African SMEs to develop locally made personal protective equipment thereby shedding light on the role of standards in industrialization, safety, and trade. This Initiative with Afreximbank and ITFC, will not only help in increasing local production but will also create trust and enable cross border trade and investment for pharmaceutical products and medical devices.”
The African Organisation for Standardisation (ARSO) will play a key role in the development of standardization policies, applying existing principles and procedures that are already set out in the African Standards Harmonisation Model (ASHAM). ARSO’s involvement will be supported by its Council, in addition to a Joint Advisory Group comprised of Regional Economic Communities, and a series of technical committees, which will carry out the harmonisation work with the resources provided under this grant from AFREXIMBANK and ITFC.
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