Union Bank of Nigeria Plc (NGX: UBN) has notified the Nigerian Exchange Limited and its shareholders that Titan Trust Bank Limited, the Bank’s core shareholder, has made an offer for the acquisition of all the shares held by the minority shareholders in Union Bank.
According to a filing with the Nigerian Exchange on Monday, the shares will be acquired by Titan Trust for a consideration of N7.00 (Seven Naira) per share.
This consideration price is 10 kobo less than its closing price of N7.10 per share on Monday.
The bank further said that it has received the ‘No Objection’ of both the Central Bank of Nigeria and Securities & Exchange Commission.
Union bank said the transaction will be implemented by way of a Scheme of Arrangement between the Bank and the Bank’s shareholders in accordance with the provisions of Section 715 of the Companies and Allied Matters Act 2020 (as amended).
It noted that the scheme document which contains the terms and conditions of the acquisition will be dispatched to all shareholders, following receipt of an order from the Federal High Court to convene a Court-Ordered Meeting of the Bank’s shareholders.
In June 2022, Union Bank announced the execution of a share sale and purchase agreement between the Bank’s majority shareholders – Union Global Partners Limited, Atlas Mara Limited, et al. – and Titan Trust Bank Limited (TTB).
The transaction transferred 93.41% of Union Bank’s issued share capital to TTB.
About Union Bank of Nigeria Plc
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc. is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank is a trusted and recognizable brand, with an extensive network of over 300 branches across Nigeria.
he Bank currently offers a variety of banking services to both individual and corporate clients including current, savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance. The Bank also offers its customers convenient electronic banking channels and products including Online Banking, Mobile Banking, Debit Cards, ATMs and POS Systems.
Union Bank is currently a Tier 2 bank and right behind Stanbic IBTC which has a total asset of N2.7 trillion.
About Titan Trust Bank Limited
Titan Trust Bank Limited was established on the 12th of December, 2018 and obtained its National Banking license on the 26th of April 2019, to operate as a commercial bank with national authorization.
Titan Trust Bank’s license is the first National Banking license that the Central Bank of Nigeria has granted in the last ten years.
There are 3 significant institutional investors in Titan Trust with a total of 95.55%, according to the 2020 audited account, and the bank is rumoured to be owned by Indians.
The bank is led by CEO Mudassir Amray, a former Citibank executive, and Titan Trust counts Citibank as a correspondent bank.
Titan Trust made money in 2019 despite being open for only 81 working days, and has remained profitable since.
Titan Trust Bank currently has just two bank branches located in Lagos.
In June, 2021, Investogist reported that The Central Bank of Nigeria (CBN) approved Titan Trust Bank as one of the designated banks for the collection of Nigeria Export Supervision Scheme (NESS) Levy.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.