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The Lion King | 15
of UBA Plc covering the Southern
Nigeria region.
In its statement to employees on
the restructuring, the Board of
Directors of UBA Plc stated that
the proposed new structure un-
der the Scheme will have UBA Plc
operate as a monoline commer-
cial bank and divest from all non-
commercial banking subsidiaries.
However, as from the Effective
Date which is January 2, 2013, all
existing contracts of employment
of all employees and contractors/
consultants, etc of United Bank
for Africa Plc, UBA Capital Plc,
Afriland Properties and Africa
Prudential Registrars Plc will re-
main valid. Where any employee,
contractor/consultant of United
Bank for Africa Plc and its exist-
ing subsidiaries does not wish to
continue in the employment after
the restructuring, such employee
will be entitled to obtain the full
terminal benefits based on his/
her existing contract of service
with each affected company.
The Restructuring is not intended
to jeopardize the employment of
any employee of United Bank of
Africa Plc and its current subsidi-
aries. On the contrary, by creat-
ing a stronger, more efficient,
and more profitable organization
independently managed by their
respective owners, it is hoped
that the Restructuring will cre-
ate better opportunities for all
employees at all levels.
Other benefits of the struc-
ture as listed by the Chairman,
Chief Israel Ogbue in his letter
to the shareholders include the
following:
• It ensures regulatory compli-
ance by ring-fencing the
Group’s commercial banking
business from the operations
of other non-commercial
banking businesses.
• The structure will enhance
UBA’s corporate govern-
ance practices as there will
be dedicated board and
management focus on the
core business of commercial
banking.
• It ensures the protection of
shareholder value. In design-
ing the new proposed struc-
ture, care has been taken
to ensure that the potential
concerns of all stakehold-
ers are addressed, particu-
larly shareholders of UBA
Plc. The proposed restructur-
ing of the Group will ensure
that the Bank’s holdings in
its non-commercial bank
subsidiaries are spun off to the
current shareholders in propor-
tion to their existing holdings in
the Bank.
• A monoline commercial
banking business will ensure
that the retained subsidiaries
of UBA are strengthened by
the increased focus on their
growth needs.
• Significant enhancement of
portfolio optimization, coordi-
nation and reduction of risks
and duplications across the
different businesses.
• Enhanced focus on providing
senior management oversight
that is specific to the needs of
each of the Group’s businesses
given their differing geograph-
ic and strategic focus and
business maturity profiles.
• Shareholders will access,
through a holding company,
accruable synergies and
benefits from consolidat-
ing similar non-commercial
banking businesses
• Shareholders will remain the
end beneficiaries of inherent/
future value existing in viable
subsidiaries that operate in
industries with strong underly-
ing fundamentals and that
have demonstrated sustain-
able growth and profitability
profiles.
• Capital market valuations of
post-restructure entities will
likely reveal an unlocking of
value as investors will gain a
deeper understanding of spun
off entities currently within
the UBA Group and will be
better able to ascribe values
that match the earnings
and growth profiles of these
businesses.
• Improved access to new
capital as, post-scheme,
separated entities can raise
new capital for the strategic
requirement of their respective
businesses based on their own
individual growth prospects.
• Improved financial perform-
ance of the non-commercial
bank subsidiaries as they
compete effectively with
dedicated board and
management oversight.
Going forward, UBA Plc will oper-
ate as an International Bank and
will hold all the Nigerian com-
mercial banking businesses and
the Africa banking subsidiaries in-
cluding the Bank’s branch in New
York, UBA Pensions Custodian,
UBA FX Mart and UBA Capital
Europe.
Rasheed Olaoluwa
Group CEO, UBA Capital Plc
Peter Ashade
CEO, Africa Prudential Registrars Plc
Feature
Uzo Oshogwe
CEO, Afriland Properties Plc