Fakoyejo Olalekan
Titan Trust Bank Limited, the majority investor in commercial bank, Union Bank of Nigeria (UBN) Plc, has revealed its plan to acquire 100 per cent of the financial institution.
Currently, Titan Trust Bank owns a 94.5 per cent controlling stake in Union Bank, with minority shareholders accounting for the remaining 5.97 per cent.
Join our WhatsApp ChannelIn a statement released on Monday, 8 May, to the stock exchange authority, Nigerian Exchange Limited (NGX), Union Bank informed its shareholders and the capital market that Titan Trust is open to acquiring the 5.97 per cent stake to increase its ownership to 100 per cent.
Prime Business Africa gathered that the 5.97 per cent stake represents 1.74 billion shares and will cost Titan Trust Bank N12.18 billion to buy.
Titan Trust has offered to buy the shares from minority shareholders at the cost of N7 per share, months after the majority investor acquired 27.52 billion shares in Union Bank to own 94.5 per cent ownership in the financial institution.
According to Union Bank in the statement, “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),” the bank said.
Union Bank further stated that: “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 despatched to all shareholders, following receipt of an order from the Federal High Court to convene a Court-Ordered Meeting of the Bank’s shareholders.”
