Custodian Investment Plc is launching a mandatory takeover offer to acquire 34,415,332 ordinary shares of 50 kobo each in UPDC PLC at the rate of N0.90 kobo per share.
The Numbers of share to be acquired by the company represents 3.02 per cent of the total minority shareholdings of UPDC.
The process of the transaction would enable Custodian to offering to acquire shares from the minority shareholders of the UPDC on a voluntary basis, provided that it shall not be required to acquire any share in excess that would take Custodian’s aggregate interest in UPDC up to maximum of 51.1 per cent of the issued and paid up share capital of the company the offer.
The Board of directors, UPDC while considering the terms of the offer to be fair and reasonable said it presents a great opportunity for shareholders to realise liquidity at an attractive valuation.
Although the board recommended the offer to the shareholders, but the extent to which shareholders will participate in the offering is left for each shareholder to decide individually and this will be influenced by their own individual financial and investment objectives.
Under this type of transaction, the company said that shareholders expected to seek independent professional advice for guidance as to whether to transfer their shares pursuant to the offer or not, stressing that once transferred, shares may not be disposed of other than in accordance with terms and conditions of the offer document.
In a statement signed by two directors of UPDC, Odunayo Ojo and Folakemi Fadahunsi on behalf of the board of directors confirmed that no offer of the company was paid any compensation for loss of his office 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.