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...For a better society... Monday, September 20 2004 Vol 17 No.30 News Editorial Opinion Labour Politics Sports Features Columnists Business Money/Market Energy Alaba Market Foreign News UACN to raise N2.8bn KENNETH MADUEKE LEADING conglomerate, UAC of Nigeria (UACN) Plc is expected today to open offers by way of rights, 227,158,614 ordinary shares of 50 kobo. The development is meant to give opportunity to existing shareholders of the firm to own more shares. Managing Director/Chief Executive Officer (MD/CEO) of UACN, Dr. Joshua Ajayi said the offer which closes October 27, will be on the basis of one ordinary share for every four shares held as at last June 4. In an interview with Daily Champion, Dr. Ajayi said the estimated gross proceeds of the rights issue will N2.8 billion while its net proceeds is N2.6 billion. He said the joint issuing houses to the offer are FCMB Capital Markets and Leadbank Plc, adding that the offer is not underwritten at the instance of UACN. The chief executive stated that net proceeds of the offer will be applied essentially for business expansion plans and debt reduction. He explained that 29 per cent of the proceeds will be used for the development of other popular fast foods outlet, Mr. Bigg’s restaurants, and production units while debt reduction will take N1.07 billion or 40 per cent of the amount. The development of Innscor franchised counters (brands) and expansion of MDS warehousing and distribution facilities by the firm are planned to take 15 per cent and 16 per cent net proceeds of the offer, he said. According to Dr. Ajayi, there are strong indications that shareholders of UACN are going to the rights issue, moreso as the company remains a good stock. The market capitalisation of UACN at offer price (pre-offer) is N11.4 billion and the post-offer is estimated to hit N14.1 billion. Dr. Ajayi explained that part of the company’s indebtedness are bank loans and overdrafts, bankers’ acceptances and commercial papers amounting to N3.72 billion. Other outstanding debts in the books of UACN are about N712 million in agricultural loans, export bank loans and finance leases, he added. The company has applied to the Nigeria Stock Exchange (NSE) for admission to its daily official list of the total 227,158,614 ordinary shares now being offered. � 2004 @ Champion Newspapers Limited (All Right Reserved). Powered By dnetsystems.net dnet�

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