Custodian Investment Plc has concluded the first tranche of its planned purchase of UPDC, a deal that was first announced in August 2020.
Included in its financial assets is N823.51million for 946,558,467 units of UPDC Plc shares at an initial cost of N666.15million representing 10 percent of Custodians total anticipated holding in UPDC Plc.
“Per the binding sale and purchase agreement with UACN Plc, the parent of UPDC Plc, the company is irrevocably committed to acquiring approximately 51% of the issued share capital of UPDC Plc but will not control its day to day operations,” Custodian said in a statement.
The acquisition of the shares of UPDC Plc. is expected to be concluded by November 2020 at which time the investment will be reclassified as investment in associate.
The board of directors of Custodian Investment Plc announced in August that a binding agreement has been signed with UAC of Nigeria Plc (UACN), for Custodian to purchase a 51 percent equity interest in UACN Property Development Company Plc (UPDC).
- Sale of 9,465,584,668 UPDC ordinary shares held by UAC, representing 51 percent of UPDC’s issued share capital, to Custodian.
- Sale Shares will be sold in two tranches: Initial sale of 946,558,467 shares, representing 5.10 percent of the issued share capital of UPDC, on execution of binding transaction agreements.
Subsequent sale of 8,519,026,201 shares, representing 45.90 percent of the issued share capital of UPDC upon receipt of requisite approvals.
Custodian Investment Plc, formerly Custodian and Allied Plc, is a Nigeria-based holding company.
The Company’s general insurance includes motor insurance, travel insurance, home shield and portal home. Its life insurance includes Safety Plus, Esusu, Dignity and Portal Home.
The Company’s subsidiaries include Custodian and Allied Insurance Limited, Custodian Life Assurance Limited, Custodian Trustees Limited and Crusader Sterling Pensions Limited.
Custodian Stock which closed trading at N6.05 per share on Friday has gained 20.85 percent in the past year and sports a dividend yield of 7.4 percent. The firm reported a N1.2 billion loss at the operating income level in the third quarter of 2020.