Shareholders of United Bank for Africa (UBA) Plc have approved the internal restructuring and reorganisation of the capital of the bank and its members in compliance with the Central Bank of Nigeria (CBN)’s Regulation on the Scope of Banking Activities and Ancillary Matters, which repealed the universal banking model under which Nigerian banks hitherto operated.
In compliance with the new regulations, shareholders convened at a ‘Court Ordered Meeting’ held Thursday at the Harbour Point, Victoria Island, Lagos and unanimously approved the adoption of a commercial banking structure by divesting all non-commercial banking businesses of the Group which are now to be held separately from UBA Plc by the bank’s shareholders.
Under the new arrangement, the divested non-commercial banking businesses (except Africa Prudential Registrars and Afriland Properties that will be held directly by shareholders) will be consolidated within UBA Capital Plc, which today is one of the bank’s subsidiaries.
Besides UBA Plc, the restructuring will therefore result in the emergence of four separate standalone companies namely, UBA Plc, UBA Capital Plc, African Prudential Registrars Plc and African Properties Plc.