"Take Your Money And Go": Titan Trust Bank to Pay Off Union Bank Shareholders, Begins Takeover Bid
- Titan Trust Bank is making the final move to take over Union Bank after completing the deal last year
- The new bank is offering minority shareholders of Union Bank N7.70 per share (N13.4bn) for their stakes in the bank
- Union Bank will, therefore, cease to exist as a public company after 54 years following the move
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Newly established Titan Trust Bank will pay minority shareholders of Union Bank about N13.4 billion (N7.70 per share) for unloading their stakes to the core investor immediately after the last mile of the deal is concluded.
Titan Trust disclosed this in a regulatory filing on Tuesday, November 14, 2023.
Source: UGC
Titan Trust to pay N7.70 per share to minority shareholders
The move is 10% higher than the initial N7 per share offered by Titan Trust Bank last October when it launched a compulsory takeover offer for the bank's minority shares.
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Union Bank exits Nigeria’s stock exchange after 52 years, announces payoff for shareholders
Union Bank is rounding off the process of getting approval to delist its shares from the Nigerian Exchange (NGX).
The move will give Titan Trust the powers to convert Union Bank into private ownership.
Titan Trust holds a majority of 94.1% interest in Union Bank, its 2022 annual report said.
Union Bank to cease to exist as a public company
The development will end Union Bank's public company status as Nigeria's second-oldest commercial bank after trading on the NGX for almost 54 years. It joined the NGX in January 1970.
According to a Premium Times report, a scheme of arrangement authorizing the transaction received a no-objection response from the Central Bank of Nigeria and the Securities and Exchange Commission.
Union Bank held a court-approved meeting in June 2023 where the shareholders with 99.98% stake voted in favour of the special resolution approving the takeover.
Union Bank's shares reportedly surged to almost 71% this year following the development.
Fidelity Bank takes over Union Bank UK
In a similar move, Fidelity Bank also took over the operations of Union Bank UK.
Union Bank, one of Nigeria's oldest financial institutions, announced it was delisted from the Nigerian Exchange (NGX).
This was in a corporate release on the NGX signed by Somuyiwa Sonubi, the Company Secretary, Legit.ng reported.
Upon approval, the company noted that the the registrars will remit the scheme consideration to all bank shareholders. It added that this depended on the decision of the court-ordered meeting and the subsequent sanction by the federal high court.
It urged all bank shareholders to ensure their accounts were duly mandated to receive the scheme consideration.
The development comes after its core shareholders, Titan Trust Bank Limited, in May, acquired all the shares in the company. In 2021, Titan Trust Bank initially showed interest in the company by purchasing 88.39% of the bank, which was over a decade old.
“Apply now”: After buying Union Bank UK, Fidelity Bank announces job opening for fresh graduates
Legit.ng earlier reported that Fidelity Bank commenced recruitment of fresh graduates for its Trainee Programme to join its workforce across Nigeria.
The bank announced this in a statement published on its website and obtained by Legit.ng.
According to the statement, the Graduate Trainee Programme promised opportunities for budding professionals looking to kickstart their careers in the financial sector.
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Source: Legit.ng
