The minority shareholders of Union Bank Plc will receive N13.4 billion (N7.70 per share) for offloading their stakes to the core shareholder Titan Trust Bank once the last mile of the deal is reached, the bank said in a regulatory filing on Tuesday.
The current consideration is 10 per cent higher than the initial offer of N7 per share, tabled by Titan Trust last October when it launched a mandatory takeover offer for the bank’s minority shares.
Union Bank is rounding off the process of obtaining approval to delist its shares from the Nigerian Exchange (NGX). If successful, the move will grant Titan Trust the leave to convert the bank into private ownership.
“Consequent upon the approval, the Registrars will remit the Scheme Consideration to all shareholders of the Bank, pursuant to the decision of the Court-Ordered Meeting and the subsequent sanction by the Federal High Court,” the statement said.
The move will end the public company status of Nigeria’s second-oldest commercial bank almost 54 years after it joined the NGX (then the Lagos Stock Exchange) in January 1970.
A Union Bank board member told PREMIUM TIMES last year that a business combination of the two banks is on the cards, noting that the name “Union Bank” would be adopted for the proposed merged entity.
A scheme of arrangement authorising the transaction received a ‘No Objection’ from both the Central Bank of Nigeria and the Securities & Exchange Commission, Union Bank said in May.
The lender held a court-ordered meeting in June at which shareholders holding 99.98 per cent of the bank’s shares voted in favour of the special resolution approving the scheme.
Union Bank’s shares have returned 70.9 per cent so far this year.
“All shareholders of the Bank are enjoined to ensure that their accounts have been duly mandated to receive the Scheme Consideration,” the statement said.
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