Minority Shareholders Reject Union Bank, Oando Acquisition Arrangement

The President of the New Dimension Shareholders Association, Patrick Ajudua, has spoken against the proposed offer tendered by Titan Trust Bank Limited and Ocean and Oil Development Partners Limited (OODP) to buy out Union Bank and Oando minority shareholders.

Titan Trust Bank had offered to acquire each minority investor’s shares in Union Bank at the worth of N7, which is below the current share price of N7.05. 

Also, Ocean and Oil Development Partners Limited offered minority shareholders in Oando N7.07 for each share. This is N1.53 kobo more than the current share price of N5.54 kobo.

Both Titan Trust Bank and Ocean and Oil Development Partners Limited are looking to take Union Bank and Oando private, and to do so, they need 100 per cent control of the firms. 

However, minority shareholders in Union Bank and Oando are unhappy with the takeover offer, arguing that they need value for their investments. 

Ajudua in a report on Thursday, said the management needs to ensure minority shareholders are fairly treated. He said they want fair value for their exit price. 

He revealed that during the Extraordinary General Meeting (EGM), their concerns will be raised and minority shareholders will demand for upward review of the exit price. 

“As shareholders, the prices being offered by Titan Trust Bank and Oando are far from satisfactory to us. So, we are calling on the management of the companies to ensure fair treatment of the minority shareholders in their exit plans. 

“That would take care of our concerns. The shareholders in the EGMs will engage the companies with a view to getting fair value in respect of the exit price. We will take the liberty at EGMs to call for an upward review of the price,“ he told Nairametrics.