Titan Trust to pay N13.49bn to effect Union Bank’s mandatory takeover

Titan Trust Bank Limited has triggered a mandatory takeover of Union Bank of Nigeria Plc, a corporate document sent to investors has revealed.

Ripples Nigeria had reported in June that Titan Trust Bank acquired a majority stake in Union Bank, resulting to the Chief Executive Officer, Chairman and seven others resigning from their position with immediate effect.

At the time, Titan Trust Bank had taken over 93.41 percent shares of Union Bank, with the mandatory takeover offer, the majority investor now eyes another 6.59 per cent of UBN.

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The corporate document released on Monday disclosed that the 6.59 per cent represents take over of 1,927,532,558 ordinary shares of Union Bank. The qualification date is October 31, 2022, at a price of N7 per share.

This means Titan Trust Bank will pay N13.49 billion to effect the mandatory takeover, raising its ownership to 100 per cent, which takes Union Bank out of the class of publicly-owned banks in Nigeria.

“Titan Trust has received the Securities and Exchange Commission’s approval to launch the MTO. The MTO is priced at N7.00 (seven Naira) per ordinary share; being the price at which the block trade was executed.

“The Qualification Date for the MTO is 5.00 pm on Monday 31st October 2022 – which is the date on which the names of shareholders must be in the register of members and is the settlement date for trades that are executed on Wednesday 26th October 2022.

“For clarity, all trades must be executed by Wednesday 26th October 2022 in order to qualify to participate in the MTO, and only shareholders whose names are in the register of members on 31st October 2022 will be able to participate in the MTO.”

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