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UAC of Nigeria Falls for Third Day as Dividend Plan Disappoints

March 27 (Bloomberg) -- UAC of Nigeria Plc, a food-products maker and fast-food restaurant operator, fell for a third day after its dividend plan for 2011 disappointed investors, Lambeth Trust and Investment Co., a Lagos-based brokerage, said.

UAC will pay an annual dividend of 1.5 naira per share, the company said in a statement released at the stock exchange in Lagos and distributed by Vetiva Research today. The company is yet to announce its full-year results, Vetiva said. Company results in Nigeria are usually distributed by the bourse to brokerages before they are posted on its website.

The stock lost 1.52 naira, or 4.9 percent, to 29.83 naira by 1:14 p.m. in Lagos. A close at this price will be its longest losing streak since March 14.

“The stock is falling because the distribution is not encouraging,” David Adonri, chief executive officer of Lambeth, said by phone from Lagos today.

UAC reported a second-quarter profit of 7.8 billion naira, including 5.5 billion naira earned from the sale of a 49 percent stake in UAC’s food division to Tiger Brands Ltd. of South Africa, Securities Africa Ltd., a Johannesburg-based brokerage, said at the time.

“People expected that this extraordinary income would be distributed to shareholders,” Adonri said. “Given that extraordinary income, analysts were forecasting a dividend per share of 4 naira.”

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To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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