Titan Trust Bank Limited, a core shareholder of Union Bank of Nigeria Plc, has made an offer to the Board of Directors of Union Bank for the acquisition of all the shares held by the minority shareholders in the bank. This was disclosed by Union Bank in a notice to Nigerian Exchange Limited and other stakeholders.
According to the notice, the transaction will be implemented through a scheme of arrangement between Union Bank and its shareholders, who are the minority shareholders. The scheme will be carried out in line with the provisions of Section 715 of the Companies and Allied Matters Act 2020 (as amended).
Under the scheme, Titan Trust will acquire the scheme shares, which are the outstanding shares of the bank that are not already held by Titan Trust. The purchase will be made for a consideration of N7.00 (seven naira) per share.
The notice further stated that Union Bank has obtained the “no objection” of both the Central Bank of Nigeria and the Securities and Exchange Commission to the proposed transaction.
The terms and conditions of the scheme are contained in a scheme document, which will be dispatched to all shareholders of Union Bank after the Federal High Court issues an order to convene a court-ordered meeting of the bank’s shareholders.
This proposed acquisition is expected to strengthen Titan Trust Bank’s position in the Nigerian banking sector and consolidate Union Bank’s operations. This will also lead to greater efficiency in the operations of both banks and improve the overall banking experience for customers.
Union Bank is a commercial bank in Nigeria with over 300 branches across the country. It offers a range of financial services to individuals, small and medium-sized businesses, and large corporations. Titan Trust Bank, on the other hand, is a relatively new bank in Nigeria, having commenced operations in 2019. The bank focuses on providing innovative financial solutions to its customers and has rapidly gained popularity in the Nigerian banking sector.
This acquisition will further strengthen Titan Trust Bank’s presence in the Nigerian banking sector and position the bank for growth in the coming years. The acquisition will also allow Union Bank to focus on other strategic areas of its operations, while Titan Trust Bank will handle the day-to-day running of its banking business.
Overall, this acquisition is expected to bring about positive changes in the Nigerian banking sector and improve the competitiveness of Nigerian banks in the global market.