Union Bank of Nigeria Plc (NGX: UBN) has announced to the Nigerian Exchange Limited and its stakeholders, that it the majority Shareholder; Titan Bank Limited has notified it of a Mandatory Takeover Offer (MTO) that will be made to shareholders of Union Bank.
The Mandatory Takeover Offer is for 1,927,532,558 ordinary shares of 50 Kobo each in the Bank, and represents 6.59% of the shareholding of Union Bank of Nigeria Plc.
Union Bank has 29,120,752,788 outstanding ordinary shares of 50 Kobo each. Titan Trust Bank Limited earlier in the year completed a Share Sale and Purchase Agreement to acquire 89.39% of the issued share capital of Union Bank held by Atlas Mara Limited (7,471,752,753 shares – 25.53%) and Union Global Partners Limited (19,017,923,071 shares – 64.98%).
In the notification of the MTO seen by Investogist, each ordinary share of UBN is priced at N7.00, being the price at which the Block Trade was executed. This will be a 20% premium on the N5.60 per share price of Union Bank shares at the end of trading on Monday.
Titan Trust Bank has received the Securities and Exchange Commission’s approval to launch the MTO.
The Qualification Date for the MTO is 5.00pm on Monday 31st October, 2022 – which is the date on which the names of shareholders must be in the Register of Members and is the settlement date for trades that are executed on Wednesday 26th October, 2022.
For clarity, all trades must be executed by Wednesday 26th October, 2022 in order to qualify to participate in the MTO, and only shareholders whose names are in the Register of Members on 31st October, 2022 will be able to participate in the MTO.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur