Union Bank

[prince dagbolu]

Originally Posted by hispy99

Latest Market Info
UBN: SUSPENSION LIFTED
UBN OF NIGERIA PLC: WE HAVE HAVE THIS AFTERNOON LIFTED THE TECHNICAL SUSPENSION ON THIS STOCK, PENDING WHEN THE COMPANY IS READY TO PROCEED WITH THE PROPOSED OFFER.

Wise move by Union Bank. There is not a lot of cash out there to invest. Its a shame because most Nigerian Companies are reporting good profits. If only they will learn to reward investors better. May be more people will develop confidence in the NSE and invest.

[hispy99]

By Goddy Egene, 10.12.2008

Barring any last minute change, shareholders of Union Bank of Nigeria Plc are to receive a cash dividend of N1.10 and a bonus share of one new share for every six shares already held for the year ended March 31, 2008.
Union Bank has been consistent with its robust dividend and bonus policy.
For instance, it declared a profit after tax of N13.8 billion for the year ended March 31, 2007, paid a dividend of N1 and a bonus of one new share for every five shares already held.
Although the results are awaiting regulators’ approval, THISDAY checks revealed that the directors of the bank might have recommended a dividend of N1.10 and bonus of one new share for every six shares already held.
Given the current outstanding shares of Union Bank of about 11.6 billion shares, the proposed N1.10 dividend would amount to N12.76 billion. This implies that the bank must have ended the year with a very high profit after tax for 2008.
The bank had in its half year result ended September 31, 2007 posted gross earnings of N50.6 billion and a profit after tax of N13.5 billion.
“Given the growth trend of the bank, it must have ended the full year with an impressive performance, hence the directors are recommending such a mouth-watering returns,” a market operator said.
Union Bank had planned to access the capital market for N301billion to boost its operations. The hybrid offer ought to have opened last August but the current bearish trend led to postponement. The bank had intended to offer to members of the investing public 7,300435,466 shares of 50 kobo each at N36 per share and rights issue of 1,117,650,000 shares of 50 kobo each at N35 per share.
The Group Managing Director of the bank, Mr. Barth Ebong, had explained that the offer would provide increased funding capability needed to take advantage of high volume driven businesses in key growth sectors of the Nigerian economy.
Only recently, Ebong restated the bank’s steadfastness to continue to partner with the Federal Government to promote the development of the real sector of the national economy and boost agricultural production.
In line with this, he said that the bank had increased its exposure to farmers from N4.5billion to N6.2 billion this year.
He explained that the success of the bank’s role in agricultural financing was indicated in the level of funds committed to the sector since 1977. He said the significant increase in the bank’s exposure to farmers was to ensure that Union Bank assisted in completely eliminating food shortage and poverty in the country and to create employment opportunities for the teeming population.
He added that the bank’s philosophy to ensure that the growth at the country was not restricted to oil and gas alone, but also to the industries that keep the oil and gas flowing and useful.

THISDAY ONLINE / Nigeria news / African views on global news

[nkemjika]

Tnx hispy. I tried to access the link, but cldn't as a result of poor network. Do u have details of the report e.g PAT etc.?
Tnx

[hispy99]

Originally Posted by nkemjika

Tnx hispy. I tried to access the link, but cldn't as a result of poor network. Do u have details of the report e.g PAT etc.?
Tnx

Sorry, I don't have those numbers.

[nkemjika]

Thanks and pls post it once u get the info. I will do same if I ve it b4 u do.

[ayemco]

Originally Posted by hispy99

By Goddy Egene, 10.12.2008

Barring any last minute change, shareholders of Union Bank of Nigeria Plc are to receive a cash dividend of N1.10 and a bonus share of one new share for every six shares already held for the year ended March 31, 2008.
Union Bank has been consistent with its robust dividend and bonus policy.
For instance, it declared a profit after tax of N13.8 billion for the year ended March 31, 2007, paid a dividend of N1 and a bonus of one new share for every five shares already held.
Although the results are awaiting regulators’ approval, THISDAY checks revealed that the directors of the bank might have recommended a dividend of N1.10 and bonus of one new share for every six shares already held.
Given the current outstanding shares of Union Bank of about 11.6 billion shares, the proposed N1.10 dividend would amount to N12.76 billion. This implies that the bank must have ended the year with a very high profit after tax for 2008.
The bank had in its half year result ended September 31, 2007 posted gross earnings of N50.6 billion and a profit after tax of N13.5 billion.
“Given the growth trend of the bank, it must have ended the full year with an impressive performance, hence the directors are recommending such a mouth-watering returns,” a market operator said.


THISDAY ONLINE / Nigeria news / African views on global news

Hi Guys,

Let me start our usual speculative discussion. Do you think this will kick off a gradual increase in the Union Banks Price? At what cost (if it rises) do you think it would be worth selling off CUMDIV, assuming the 1:6 Bonus and the 1.10 naira Dividend speculation. Your contributions will be highly appreciated. I want to dispose off some of these shares. thanks

[hispy99]

Originally Posted by ayemco

Hi Guys,

Let me start our usual speculative discussion. Do you think this will kick off a gradual increase in the Union Banks Price? At what cost (if it rises) do you think it would be worth selling off CUMDIV, assuming the 1:6 Bonus and the 1.10 naira Dividend speculation. Your contributions will be highly appreciated. I want to dispose off some of these shares. thanks

I would say at least 2 days before the price is adjusted. Waiting till 1 day before van be dangerous.

[billions]

Originally Posted by ayemco

Hi Guys,

Let me start our usual speculative discussion. Do you think this will kick off a gradual increase in the Union Banks Price? At what cost (if it rises) do you think it would be worth selling off CUMDIV, assuming the 1:6 Bonus and the 1.10 naira Dividend speculation. Your contributions will be highly appreciated. I want to dispose off some of these shares. thanks

I will probably sell at anytime a buyer is willing to buy my shares provided d price is more dan 37 naira.

About 90% of my UBN is gone already at about 42 naira..i dont care much abt d remaining 10%.

I need more cash...

[ayemco]

Originally Posted by billions

I will probably sell at anytime a buyer is willing to buy my shares provided d price is more dan 37 naira.

About 90% of my UBN is gone already at about 42 naira..i dont care much abt d remaining 10%.

I need more cash...

Aaah Buillions you are lucky Oooo. i waited too long to dispose off. Now I am finding it difficult to sell Oooo.

Na wa O. Maybe this news will help increase the price

[hispy99]

Union Bank Still Big, Strong, Reliable––Ebong
By Ndubuisi Francis, 10.15.2008

Group Managing Director, Union Bank of Nigeria Plc, Dr. Barth Ebong yesterday reiterated that the bank still remains big, strong, and reliable even as he formally confirmed the lifting of the technical suspension placed on the share price of the bank by the Nigerian Stock Exchange (NSE).

Briefing newsmen at the bank’s corporate headquarters in Lagos, Ebong stated that the bank’s stock has remained strong in the capital market even as the bank is a reliable and strong player in the nation’s banking sector, with investors enjoying good dividends and bonuses.

Desribing the delay in the commencement of its N300 billion hybrid offer as a temporary setback, Ebong said the bank was restrategising with a view to finding the best way to move ahead.

According to him, the regulatory authorities reserved the discretion to lift the suspension, noting however that the bank’s shares were worth the while and will be well embraced when the offer commences.

He stated that the last time the bank had an offer in 2005, the proceeds were injected into very fruitful areas to boost its operations, adding that whatever is realised from the N300 billion impending hybrid offer, will similarly be effectively and efficiently utilised.

Ebong affirmed that the bank would witness a major transformation in the next 24 months, stressing that among others, the bank’s strategies for remaining on top would tilt towards human, physical resources,and information technolgy development.

Speaking oth the financial meltdown in the United States of America and parts of Europe, Ebong noted that the confidence in Nigerian banks has not waned, stressing that the intervention in the Nigerian financial sector was timely.

He noted that what is happening in the US and Europe was a wake-up call to Nigerian banks, pointing out that although Nigerian banks may not slide into the kind of crisis ravaging Europe and America, due to the fact that foreign investment in our banks is not high.

“What happened in the U.S was because customers were not servicing loans and the banks don’t have money again to lend”, he said, noting that even the interest on such loans absymally low.

Ebong stated that with the crisis arising from such ridiculous interest rates, such banks dare not repeat that in future.

NSE lifts suspension as Union Bank offer is on holdThe Nigerian Stock Ex-change (NSE) has lifted the technical suspension placed on the share price of Union Bank of Nigeria plc (UBN) pending when the bank would be ready to proceed with its proposed proposed N300 billion mega offer.The hybrid offer was supposed to have commenced, mid-August, 2008, but the Securities and Exchange Commission (SEC) requested that the board produce some accounts before approvaing the offer. It was gathered that UBN had gone back to SEC and presented these accounts and is awaiting approval for the offer to commence.

Barth Ebong, the group managing director had informed journalists that the proposed N300 billion hybrid offer may open August 18, 2008.The bank intends to offer to members of the Nigerian investing public 7,300435,466 billion at N36.00 per share and rights issue of 1,117,650,000 billion at N35.00 per share respectively.The purpose of the offer according to Ebong is to provide increased funding capability needed to take advantage of high volume driven businesses in key growth sectors of the Nigerian economy."This would enable the bank reclaim market share and reinforce its positioning in the Nigerian Banking industry leadership" he said.

[cashrules]

Originally Posted by billions

I will probably sell at anytime a buyer is willing to buy my shares provided d price is more dan 37 naira.

About 90% of my UBN is gone already at about 42 naira..i dont care much abt d remaining 10%.

I need more cash...

Omo U are really lucky.. I placed mine for sale and the broker seems unable to find a buyer.. I dont mind selling at N35 cos at theis moment CASH IS KING!! and I need to take positions quickly in some undervalued stocks...

[muranay@yahoo.com]

Originally Posted by cashrules

Omo U are really lucky.. I placed mine for sale and the broker seems unable to find a buyer.. I dont mind selling at N35 cos at theis moment CASH IS KING!! and I need to take positions quickly in some undervalued stocks...

N35 is too high in the current market condition.

[billions]

Originally Posted by cashrules

Omo U are really lucky.. I placed mine for sale and the broker seems unable to find a buyer.. I dont mind selling at N35 cos at theis moment CASH IS KING!! and I need to take positions quickly in some undervalued stocks...

I sold most about 5-6 months ago,d problem is dat d money was used to buy other stocks dat r fundamentally better....we all know how d story ended.

If they declare a dividend(N1.10k)/bonus(1 for 6) maybe some people will buy but i dont really think so considering d present state of d market.

[Okadigbo]

I have a mandate to buy about 20 million units of union bank @ N29.50. Please if you do have contacts of those who might be interested in selling their union bank shares at this price, kindly send a Private message and I will take it up from there.

the deal is real.

[Gengen]

Originally Posted by Okadigbo

I have a mandate to buy about 20 million units of union bank @ N29.50. Please if you do have contacts of those who might be interested in selling their union bank shares at this price, kindly send a Private message and I will take it up from there.

the deal is real.

Okadigbo,

I thought there is glut of shares on the stock exchange. Can you not buy on the stock exchange?

If otherwise, is your mandate to buy at a price BELOW the current price at the stock exchange?