Union Bank Exits Nigeria’s Stock Exchange After 52 years, Announces Payoff for Shareholders

Union Bank Exits Nigeria’s Stock Exchange After 52 years, Announces Payoff for Shareholders

  • Union Bank, estimated to be 106-year old, is set to leave the Nigerian Exchange
  • This comes after Titan Trust Bank Limited acquired all the shares in the company earlier this year
  • It stated that shareholders of the bank would receive a scheme consideration of N7.70 per share

Union Bank, one of Nigeria's oldest financial institutions, has announced it is delisting from the Nigerian Exchange (NGX).

This was contained in a corporate release on the NGX and signed by Somuyiwa Sonubi, the company's secretary.

Union Bank
Union Bank enjoined all shareholders of the bank to ensure that their accounts have been duly mandated to receive the scheme consideration. Photo Credit: Leadership
Source: UGC

The company said:

“In compliance with the Nigerian Exchange (NGX) rule book and the announcement of the listing rules, Union Bank of |Nigeria Plc hereby notify 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 shares."

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"Take your money and go": Titan Trust Bank to pay off Union Bank shareholders, begins takeover bid

Consequent upon the approval, the company noted that the the registrars will remit the scheme consideration to all shareholders of the bank.

It added that this depends on the decision of the court-ordered meeting and the subsequent sanction by the federal high court.

It enjoined all shareholders of the bank to ensure that their accounts have been duly mandated to receive the scheme consideration.

The development comes after its core shareholders, Titan Trust Bank Limited, acquired all the shares in the company in May.

In 2021, Titan Trust Bank initially showed interest in the company by purchasing 88.39% of the bank which was over a decade years old.

Fidelity Bank buys Union Bank

Legit.ng reported that Fidelity Bank recently completed the acquisition of a 100% stake in Union Bank Plc United Kingdom (UBUK).

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The deal, valued at N8.2 billion, marks a significant step for Fidelity Bank as it moves to expand its international footprint.

The statement reads:

“The bank is pleased to announce the completion of the transaction and receipt of the approval of the Bank of England’s Prudential Regulatory Authority for change of control of UBUK.
“The acquisition of UBUK is in furtherance of Fidelity Bank Plc’s strategic initiatives on international expansion.”

Union Bank Declares Over N39bn Profit in 2022, But There's Big Trouble Ahead

Legit.ng also reported that Union Bank, one of Nigeria's oldest financial institutions, announced an impressive improvement in its financial results for 2022.

According to the bank's audited financials submitted to the Nigerian exchange, its profit after tax payment for December 31, 2022, amounted to N39.18 billion, a substantial increase from N16.9 billion in the previous year (2021).

The bank also reported a 19% increase in gross earnings to N208.2 billion, primarily driven by solid growth in net interest income.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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