Titan Trust Bank Limited is set to acquire the equities of Union Bank of Nigeria (UBN) Plc held minority investors after the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) approved the move.
Recall that some months ago, it was reported that Titan Trust, established a few years ago, acquired the majority stake in Union Bank, founded over a century ago.
This acquisition raised eyebrows in the financial system, with some people asking some questions and making speculations.
Union Bank, which trades its shares on the Nigerian Exchange (NGX) Limited, was allowed to retain its brand name, while it was reported that the lender might exit the stock market.
This is coming into a reality as the core investor in the financial institution, Titan Trust, is offering to buy out the stocks held by minority shareholders.
In a regulatory notice on Monday, Union Bank said Titan Trust had made an offer to the affected shareholders after getting no objection from its regulator, the CBN, and the capital regulator, SEC.
According to the disclosure, the minority investors are being offered N7.00 per share.
“Union Bank of Nigeria Plc hereby notifies Nigerian Exchange Limited and our esteemed stakeholders that Titan Trust Bank Limited, the bank’s core shareholder, has informed the board of directors of Union Bank of an offer for the acquisition of all the shares held by the minority shareholders in Union Bank.
“The transaction will be implemented by way of a Scheme of Arrangement between the bank and the bank’s shareholders, in accordance with the provisions of Section 715 of the Companies and Allied Matters Act 2020 (as amended).
“Under the terms of the scheme, the scheme shares, being the outstanding shares of the bank not already held by Titan Trust, will be acquired by Titan Trust for consideration of N7.00 per share.
“Union Bank has received the ‘No Objection’ of both the Central Bank of Nigeria and the Securities and Exchange Commission.
“The terms and conditions of the scheme are stated in the Scheme Document, which will be despatched to all shareholders, following receipt of an order from the Federal High Court to convene a Court-Ordered Meeting of the bank’s shareholders,” the statement said.
