UACN Property Development Company Plc (NGSE:UAC-PROP) agreed to spin off 40% stake in UPDC Real Estate Investment Trust (NGSE:UPDCREIT) for NGN 1.2 billion on September 2, 2019. The allocation ratio for the transaction is 0.0817. The shareholders of UACN Property Development Company Plc will get units in UPDC Real Estate Investment Trust in proportion to their post rights issue holdings in UACN Property Development Company. In a related transaction, UAC of Nigeria Plc agreed to spin off UACN Property Development Company Plc on September 2, 2019. Post-closing, UACN Property Development Company Plc will hold 5% stake in UPDC Real Estate Investment Trust. UACN Property Development Company Plc shareholders will become direct unit holders in the UPDC Real Estate Investment Trust.

The transaction is subject to approval of shareholders of UACN Property Development Company and UAC of Nigeria, approval of the Securities and Exchange Commission, Nigeria (SEC), approval of Federal High Court and Nigerian Stock Exchange (NSE). The transaction was recommended by the Board of Directors of UACN Property Development Company Plc and seeks shareholders support for the same. As of May 7, 2020, transaction is subject to corona virus disruptions that might affect approval timings. On July 15, 2020, an Order of the Federal High Court the Court has directed that a meeting of the shareholders of UACN Property Development Company PLC will be held on October 26, 2020. On October 26, 2020, the transaction was approved by the shareholders of UACN Property Development Company. On December 27, 2020, UACN Property Development Company Plc received an approval from the SEC. The effective date of the scheme is December 24, 2020. The qualification/eligibility date is December 21, 2020.

Stanbic IBTC Capital Limited acted as the financial advisor, Banwo & Ighodalo acted as the legal advisor and KPMG Advisory Services acted as an accountant, Africa Prudential Plc acted as the registrar, Ernst & Young Nigeria acted as auditors and Stanbic IBTC Stockbrokers Limited acted as the stockbrokers for UACN Property Development Company Plc.