You are here: HomeBusiness2023 11 15Article 710927

Business News of Wednesday, 15 November 2023


‘Take your money and go’ - Titan Trust Bank to pay off Union Bank shareholders, begins takeover bid

Titan Trust Bank Titan Trust Bank

Newly established Titan Trust Bank will pay minority shareholders of Union Bank about N13.4 billion (N7.70 per share) for unloading their stakes to the core investor immediately after the last mile of the deal is concluded.

Titan Trust disclosed this in a regulatory filing on Tuesday, November 14, 2023.

The move is 10% higher than the initial N7 per share offered by Titan Trust Bank last October when it launched a compulsory takeover offer for the bank's minority shares.

Union Bank is rounding off the process of getting approval to delist its shares from the Nigerian Exchange (NGX). The move will give Titan Trust the powers to convert Union Bank into private ownership. Titan Trust holds a majority of 94.1% interest in Union Bank, its 2022 annual report said.

Union Bank to cease to exist as a public company

The development will end Union Bank's public company status as Nigeria's second-oldest commercial bank after trading on the NGX for almost 54 years. It joined the NGX in January 1970.

According to a Premium Times report, a scheme of arrangement authorizing the transaction received a no-objection response from the Central Bank of Nigeria and the Securities and Exchange Commission.

Union Bank held a court-approved meeting in June 2023 where the shareholders with 99.98% stake voted in favour of the special resolution approving the takeover.

Union Bank's shares reportedly surged to almost 71% this year following the development.