Titan Trust Bank offers N12.18bn for Union Bank minorities’ shares

Admin
4 Min Read

[ad_1]

The majority shareholder of Union Bank of Nigeria (UBN) Plc, Titan Trust Bank Limited, has offered N12.18 billion to buy out the minority investors in the commercial bank.

Titan Trust Bank informed Union Bank’s board of its intention to acquire the remaining 1.74 billion shares in the hands of minority investors.

Union Bank disclosed the offer in a statement to shareholders on Monday through the capital market authority, Nigerian Exchange Limited (NGX).

As of December 2022, Titan Trust Bank had a 94.5 per cent (27.52 billion shares) ownership stake in Union Bank. Titan Trust Bank first acquired a majority stake in UBN in June 2022.

The acquisition of the 1.74 billion shares or 5.97 per cent stake held by minority shareholders will give Titan Trust Bank 100 per cent ownership of Union Bank, giving the majority investors an opportunity to take the creditor private, from its current publicly-owned status.

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

The statement from the lender reads: “Union Bank of Nigeria Plc (“Union Bank” or “the Bank”) hereby notifies Nigerian Exchange Limited and our esteemed stakeholders that Titan Trust Bank Limited (“Titan Trust”), 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 Scheme Shares”).

“The transaction will be implemented by way of a Scheme of Arrangement (“the Scheme’’) between the Bank and the Bank’s shareholders (“the Minority 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 a consideration of N7.00 (Seven Naira) per share.

“Union Bank has received the ‘No Objection’ of both the Central Bank of Nigeria and Securities & 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.”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now



[ad_2]

[ruby_static_newsletter]
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *