As expected,the dip in share prices is blamed for Union Bank’s suspension of its offer:

UNPRECEDENTED drop in the share prices of companies which led to a major dip in stocks indices on the Nigerian Stock Exchange may have prompted the postponement of the N300 billion public offering of Union Bank of Nigeria Plc, the bank’s Managing Director, Mr. Bath Ebong revealed yesterday.
Ebong who briefed journalists on the postponed offering explained that the bank’s board decided to suspend the public offering because of the bearish trend in the stock market currently.

He, however, said that the bank’s growth plans is on course and it is geared towards ensuring adequate returns to shareholders and giving excellent service to customers.

Ebong said: “The phenomenon today is not what anybody envisaged. Nobody would have taught the United States and United Kingdom government would intervene in their markets.”

On the bank’s offering, he said: “Our offering came when the price started falling in the market place. So we thought it was necessary to sit back and reassess the situation and step back and look at strategies of raising funds.

“Happenings in the market makers is necessary for us to sit back and restrategise. The technical suspension on our sock had to be lifted so that we can restrategise.
“A wise general who goes to war and sees that the war is not favourable will have to retreat and restrategise.”

On the situation in the stock market currently and the impact the global trend would have on quoted companies, Ebong said: “As far as Union Bank is concerned, we are comfortable with our strategies and where we are going. We look at value addition to investors when we go to the market to raise funds.

“Our stock is always liquid. Our investors get divided from time to time and bonus. The situation is precarious, so we are doing our best to put on a thinking cap to ensure theinvestors and customers get value.”

On moves by banks to correct general market meltdown, Ebong said: “We are on discussion with the Stock Exchange, and CBN on ways banks can extend credit to revamp the market through interim money market arrangement. It is not concluded yet, until we get regulatory approvals.