NGX confirms Union Bank’s exit from capital market after Titan Trust Bank’s takeover

The Nigerian Exchange (NGX) has pasted the announcement of the notice of delisting of the shares of Union Bank from the Nigerian capital market.

In the notice of the delisting on NGX’s website, the bank announced that it is finalizing the process of obtaining approval to delist the Bank’s shares from NGX, upon which shareholders of the Bank will receive a Scheme Consideration of N7.70 per share.

“In compliance with The Nigerian Exchange (“NGX”) Rule Book and the Amendments to the Listing Rules, Union Bank of Nigeria Plc (“the Bank”) hereby notifies our esteemed stakeholders that the Bank is finalizing the process of obtaining approval to delist the Bank’s shares from NGX, upon which shareholders of the Bank will receive a Scheme Consideration of N7.70 per share.

“Consequent upon the approval, the Registrars will remit the Scheme Consideration to all shareholders of the Bank, pursuant to the decision of the Court-Ordered Meeting and the subsequent sanction by the Federal High Court.

“All shareholders of the Bank are enjoined to ensure that their accounts have been duly mandated, for the purpose of receiving the Scheme Consideration” the notice reads.

The journey of Union Bank’s exit from the bourse commenced in May 2023 after its core shareholders, Titan Trust Bank Limited, acquired the minority stake in the company through a scheme of arrangement between the bank and the minority investors by Section 715 of the Companies and Allied Matters Act (CAMA) 2020 (as amended).

In December 2021, Titan Trust Bank, a TGI Group subsidiary reportedly expressed interest in acquiring 88.39 per cent stake in Union Bank.

This news came as a shock to many observers that the buyer which had only commenced operations two years ago was already mature enough to take over a 104-year-old organisation.

In 2022, the acquisition was concluded and Titan Trust Bank reportedly paid N191.4 billion for the deal at N7.00 each for 27.34 million units of Union Bank’s stocks.

READ ALSO: Union Bank financial stability at risk over N1.495 trillion judgement debt

To mop up the shares held by minority investors, Titan Trust Bank offered N7.70 per unit and with the transaction concluded, the takeover was completed.

While commenting on the development, the chief executive of Union Bank, Mr Mudassir Amray, said, “This move is an effort to attract larger private investments to reconsolidate our position as one of the top pioneer Banks in Nigeria.

“We remain committed to delivering value to our customers, employees and shareholders through superior solutions.

“We appreciate the support of the Central Bank of Nigeria, Securities Exchange Commission, Nigerian Exchange Group (NGX) and every other agency and parastatal that was instrumental to achieving this.”

With this development, Union Bank becomes the 125th company to be delisted from the bourse.

By Babajide Okeowo

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