Aduragbemi Omiyale
By Aduragbemi Omiyale
One of the oldest banks in the country, Union Bank of Nigeria Plc, has exited the domestic stock market after its shares were delisted from the Nigerian Exchange (NGX) Limited.
The journey of its exit from the bourse commenced in May 2023 after its core shareholders, Titan Trust Bank Limited, acquired the minority stake in the company through a scheme of arrangement between the bank and the minority investors by Section 715 of the Companies and Allied Matters Act 2020 (as amended).
Recall that in December 2021, Titan Trust Bank, a TGI Group subsidiary, was reportedly interested in purchasing an 88.39 per cent stake in Union Bank.
The news was curious to many observers because the buyer had only commenced operations two years ago and was already mature enough to take over a 104-year-old organisation.
In 2022, the acquisition was concluded and Titan Trust Bank was said to have paid N191.4 billion for the deal at N7.00 each for 27.34 million units of Union Bank’s stocks.
To mop up the shares held by minority investors, Titan Trust Bank offered N7.70 per unit and with the transaction concluded, the lender has fully taken over the firm.
While commenting on the development, the chief executive of Union Bank, Mr Mudassir Amray, said, “This move is an effort to attract larger private investments to reconsolidate our position as one of the top pioneer Banks in Nigeria.
“We remain committed to delivering value to our customers, employees and shareholders through superior solutions.
“We appreciate the support of the Central Bank of Nigeria, Securities Exchange Commission, Nigerian Exchange Group (NGX) and every other agency and parastatal that was instrumental to achieving this.”
