One of Nigeria’s oldest banks, the Union Bank of Nigeria, has announced an increase in the price at which the stakes of minority shareholders would be acquired from N7 per unit to N7.70. In a statement signed by the Company’s Secretary, on Tuesday, the lender offered this as it approached the final stages of its plans to delist from the Nigerian Exchange Limited.
According to the statement, “In compliance with The Nigerian Exchange Rule Book and the Amendments to the Listing Rules, Union Bank of Nigeria Plc (“the Bank”) hereby notifies our esteemed stakeholders that the Bank is finalizing the process of obtaining approval to delist the Bank’s shares from NGX, upon which shareholders of the Bank will receive a Scheme Consideration of N7.70 per share.”
Recall that earlier in May, the Titan Trust Bank Limited, the core investor in Union Bank, announced plans to acquire the shares of minority shareholders in the bank. In the same vein, in 2022, the Titan Trust Bank Limited bought the controlling stake in Union Bank, which is the second-oldest lender in Nigeria. Upon receipt of 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.
Union Bank in its first quarter of 2023 reported that its profit after tax increased by 127.6 per cent to N12.6bn and non-interest income grew by 122.7 per cent quarter-on-quarter to N25.6bn at the end of Q1. This was driven by the performance of the trading portfolio, as well as other income lines such as fees and commissions.