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Titan Trust, core investor in Union Bank offers to buy out minority shareholders in UBN

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By Samuel Bankole 

Titan Trust Bank Limited, which recently acquired a majority stake in Union Bank Plc, has proposed to buy out a minority stake in one of the country’s oldest leaders.

In a regulatory communication with the Nigerian Exchange Limited (NGX), Union Bank said Titan Trust has informed “the Board of Directors of Union Bank of an offer for the acquisition of all the shares held by the minority shareholders in Union Bank.”

According to the regulatory filing, “the transaction will be implemented by way of a scheme of arrangement (“the scheme”) between the bank and the bank’s shareholders (“the minority shareholders”), in accordance with the provisions of Section 715 of the Companies and Allied Matters Act 2020 (as amended).”

The transaction will be implemented by way of a scheme of arrangement (“the scheme”) between the bank and the bank’s shareholders (“the minority shareholders”), in accordance with the provisions of Section 715 of the Companies and Allied Matters Act 2020 (as amended).

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Furthermore, the lender said, “Under the terms of the scheme, the scheme shares, being the outstanding shares of the bank not already held by Titan Trust, will be acquired by Titan Trust for a consideration of N7.00 (seven naira) per share.

“Union Bank has received the “no objection” of both the Central Bank of Nigeria and the Securities and Exchange Commission. The terms and conditions of the scheme are stated in the scheme document, which 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.

“Following recapitalization in 2012 from new investors and a new executive management team, Union Bank has undergone an award-winning transformation program to re-establish the bank as a leading provider of financial services in Nigeria.

“Union Bank is focused on retail, SME, commercial, and corporate banking businesses,” the bank stated.

In June 2022, TTB assumed full control of Union Bank and appointed a new Chief executive and five non-executive directors following the completion of the acquisition of one of Nigeria’s oldest bank.

Titan Trust acquired 93.41 percent majority shares of Union Bank shares from the then core investors, Union Global Partners Limited, Atlas Mara Limited following receipt of regulatory approvals.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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