Shareholders of Union Bank of Nigeria (UBN) on Tuesday endorsed the proposed reduction of N54.4 billion from the bank’s share premium account aimed at restructuring its balance sheet for optimal performance.
They gave the approval at the bank’s Extra-Ordinary General Meeting (EGM) held in Lagos.
Mr Cyril Odu, the bank’s Chairman, said that the company’s financial position, as of Dec. 31, 2018, showed a deficit of N54.458 billion, representing accumulated permanent losses from legacy transactions.
Odu said that the bank’s Board of Directors proposed the Share Premium Reduction in accordance with Sections 106 and 107 of the Companies and Allied Matters Act (CAMA) to offset the negative retained earnings.
He said; “The transaction, which was subject to confirmation by the Federal High Court, would have no impact on the bank’s creditors or its shareholders’ funds.
“Instead, it was expected to pave way for the payment of dividends to shareholders.’’
Odu said that the bank’s major focus was to deliver value to its stakeholders.
He said: “Union Bank is on course toward delivering its 2019-2021 strategic objectives.
“As we continue our push toward being Nigeria’s most reliable and trusted banking partner, we remain focussed on improving profitability of our business and delivering value to all our stakeholders, customers, business partners and employees.