After 52 years of listing, Union Bank of Nigeria Plc has concluded plans to delist from the Nigerian Stock Exchange (NGX). This was disclosed in a corporate filing on the NGX website.
Speaking on behalf of Union Bank, the Company Secretary Somuyiwa Sonubi said there is planned payout of N7.70 per share to shareholders under consideration. The document specified that the Registrars would ensure the distribution of the Scheme Consideration to all shareholders, contingent on the decision reached during the Court-Ordered Meeting and the approval by the Federal High Court.
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This move comes in the wake of an eventful period for Union Bank. At the close of 2021, Titan Trust Bank (TTB), spearheaded by former CBN Deputy Governor Tunde Lemo, secured CBN approval to acquire an 89.4% stake in the Union. The completion of the acquisition in June 2022 saw TTB’s ownership climb to 93.4%.
In a further bid to consolidate ownership, TTB revealed intentions in May 2023 to acquire the remaining shares, aiming for complete control over Union Bank of Nigeria by offering N7 per share.
Market observations show Union Bank of Nigeria’s stock closed at N6.65 as of November 13, 2023, marking a moment as the institution prepares for a transformative shift away from the NGX.
In response to the development, financial analysts are predicting an intriguing market response while shareholders await the outcome of the proposed payout and the bank’s imminent delisting, expecting considerable impacts on the financial landscape.
