Lagos, May 10, 2023 – Titan Trust Bank is offering N12.18 billion to minority investors in Union Bank of Nigeria (UBN) in its bid to acquire 100 per cent stake in Union Bank.
In a statement to shareholders through the Nigerian Exchange Limited (NGX), 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.
Titan Trust Bank first acquired majority stake in UBN in June 2022, but by December 2022, it had acquired up to 94.5 per cent (27.52 billion shares) stake in the bank.
The planned 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, to make the bank a private entity from its current status of publicly-owned company.
In its statement to the NGX, the core investors wrote: “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 dispatched to all shareholders, following receipt of an order from the Federal High Court to convene a Court-Ordered Meeting of the Bank’s shareholders.”
It will be recalled that the board of UBN, had in December, 2021, announced that its other minority investors, Union Global Partners Limited, Atlas Mara Limited and other shareholders, had reached an agreement with Titan Trust Bank Limited to divest their shareholding in Union Bank to Titan Trust Bank.
Titan Trust Bank commenced operation in October 2019. (GBN)
