UACN Plc announces Court Ordered Meeting; set to consider transfer of units held in UPDC REIT to shareholders.

A Federal High Court has ordered that a meeting between UAC of Nigeria Plc (UACN Plc) and its shareholders be convened for the purpose of considering, and if thought fit, approving a Scheme of Arrangement that will see the company transfer its entire units in UPDC Real Estate Investment Trust (UPDC REIT) to its eligible shareholders on a pro-rata basis.

According to a notice filed with the Nigerian Exchange Limited (NGX), the Court-Ordered Meeting will be held virtually, on the 20th of September at 10:00 am prompt.

It is pertinent to note that the transfer of the units held by the company in UPDC REIT to its eligible shareholders will be implemented through a scheme of arrangement under Section 715 of the Companies and Allied Matters Act (CAMA), 2020 as amended, incorporating a reduction in share capital under Section 131 of CAMA (the Scheme). By implication, these units will be transferred to shareholders, pro-rata to their shareholding in UAC.

What this means.

If the scheme is approved and implemented, this implies that UAC of Nigeria Plc will cease to be a unit holder in UPDC REIT. Consequently, UAC shareholders will hold UPDC REIT units in addition to their existing shares in the company.

Sequel to this, the company’s share capital account will be reduced by the sum of N3, 896,355,966, being the monetary value of the transferred units through the reduction of its share premium account. This amount will be transferred into the UPDC REIT Unbundling Liability Account.

Back story: Recall that UACN Plc had earlier announced its intent to divest from UPDC, after it sold a 51% stake to Custodian Investment Plc. The firm announced the mandatory takeover of UPDC by Custodian Investment, after the successful sale of 34,415,332 units of ordinary shares of 50 kobo each, at a price of 90 kobo per share to the latter. This move diluted UACN Plc stake in UPDC REIT from 93.86% to 42.85%.



UAC of Nigeria profit dips by 34% to N762.62 million in HY 2021.

UAC of Nigeria Plc released its unaudited financial results for the half year period ending 30th of June, 2021.

  • Revenue for the period was N46.5 billion. (+26.9% YoY)
  • Cost of sales was N38.2 billion. (+28.8% YoY)
  • Administrative expenses totalled N3.92 billion. (+15.4% YoY)
  • An operating profit of N1.7 billion was declared.
  • Profit for the period was N762.62 million. (-34.1% YoY)
  • Earnings per share of 5 kobo Vs 32 kobo YoY.

See link to results

UAC of Nigeria Plc approves disbursement of dividends worth N3.46 billion to shareholders.

The Board of UAC of Nigeria Plc has approved the disbursement of total dividends worth N3.46 billion representing N1.20 per share for the 2020 financial year.

The decisions is part of the resolutions reached at the recently concluded Annual General Meeting of the company, held at Marina, Lagos on 30th of June, 2021.

The breakdown of the total dividend of N1.20 per share shows that the sum of 65 kobo per share was allocated as ordinary dividend to shareholders, while an additional 55kobo per share was earmarked as special dividend to qualified shareholders. The total dividend will be paid on all the outstanding 2,881,296,580 ordinary shares of the company.

In line with the above, it is imperative to note that the approved dividend which is subject to appropriate withholding tax will be paid out to all the shareholders, whose names appear on the Register of Members as at the close of business on 14th of June, 2021.

Affirming this, a notice issued by the company read: ‘’ That an ordinary dividend of 65 kobo per ordinary share and a special dividend of 55 kobo per ordinary share be paid on July 1 2021 to all shareholders registered in the books of the Company at the close of business on June 14 2021.’’

Other decisions reached at the recently concluded AGM of the company are;

  • Two (2) retiring Directors were re-elected into the Board of the company.
  • Five (5) representatives were elected into the Statutory Audit Committee of the company.
  • The remuneration of the Non-Executive Directors of the Company were fixed at N106.6 million

What you should know:

  • UAC of Nigeria Plc had earlier reported a profit after tax of N3.86 billion in FY 2020, indicating a decline of 27.8% when compared with the amount declared in similar period of 2019.

For view resolutions reached at the recently concluded AGM, click HERE.

UAC of Nigeria Plc records a 64% dip in profit to N669 million in Q1 2021.

UAC of Nigeria Plc released its unaudited results for the first quarter of the year (Q1, 2021).

  • Revenue for the period was N22.02 billion. (+12.7% YoY)
  • Operating expenses totalled N2.98 billion. (-6.1% YoY)
  • Profit for the period was N669 million. (-64.1% YoY)
  • EBIT margin of 5.2% (+60bps)
  • Earnings per share from continuing operations of 12 kobo Vs 27 kobo YoY

Commenting on the result, the Group Managing Director of the company, Fola Aiyesimoju said: “Growth across our operating platforms translated to 13% revenue growth. Operational improvement initiatives resulted in a 6% reduction in operating expenses which supported marginal operating profit growth in spite of a 5% decline in gross profit. Raw material cost escalation remains a key concern and as such we are carefully assessing pricing. Our Paints business suffered production disruptions which impacted performance and our interest income declined materially in light of the low interest rate environment. These together with losses from our associates UPDC and MDS resulted in a 42% decline in profit from continuing operations. Performance in Q1 2020, being the comparative quarter last year, benefited from N717 million in exceptional income from discontinued operations relating to net gains from the divestment of a stake in MDS which impacts quarter on quarter comparisons.”

For more information about the result, click HERE.