Custodian Investment has reached the acquisition point to secure 51% equity stake in UACN Property Development Company Plc.
This was contained in a notice signed the GMD Custodian Investment Plc , Wole Oshin, that the signing of the binding agreement marks the beginning of a partnership between Custodian and UAC’s that will achive both companies’ respective objectives in the real estate industry.
The notice to Nigeria Stock Exchange also indicated that the agreement marks a significant milestone aligned with UAC’s strategy to focus on its core businesses.
Oshin said that Custodian Investment was “excited about the possibilities arising from this partnership with UAC which provides multiple levers for value creation, ” pointing out that they “share the view that their ambitions for capturing opportunity in the real estate industry will be better achieved working in partnership.
Custodian Investment new acquisition is one of Nigeria’s real estate development companies has a track record of profitability and annual dividend distribution which Oshin said, “offers a good compliment for our product portfolio.
UAC managing director, Folasope Aiyesimoju, said the transaction was a “significant step in achieving our objectives for UPDC.” He recalled that the 2018 strategic review to evaluate the performance of the company and its subsidiaries has achieved sustainable positive financial performance “from our existing operations and enable management focus on businesses that align with our strategy.”
Auyesimoju said the board reviewed the fundamental differences between the cash flow profile and capital needs of UPDC and those of the other entities in UAC portfolio and concluded that it would be in the best interest of UAC to exit its interest in the real estate sector, allowing UPDC to operate as a standalone legal entity. free to source appropriately structured capital and to unlock value for its shareholders.