In a recent development, Union Bank of Nigeria has disclosed an adjustment in the acquisition price of minority shareholders’ stakes from N7 per unit to N7.70. This move, as outlined in a statement signed by Company Secretary Somuyiwa Sonubi on Tuesday, comes as the bank progresses towards the final stages of its delisting from the Nigerian Exchange Limited (NGX).
The statement clarified, “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.”
Back in May, Titan Trust Bank Limited, the primary investor in Union Bank, had already declared intentions to acquire the shares held by minority shareholders in the bank. TitanTrust Bank Limited had acquired the controlling stake in Union Bank in 2022, making Union Bank the second-oldest lender in Nigeria.
According to the statement, upon the receipt of approval, the Registrars will disburse the Scheme Consideration to all Union Bank shareholders. This action is to be executed in line with the decision reached during the Court-Ordered Meeting and subsequent sanction by the Federal High Court.
Union Bank, having been listed on the NGX (formerly the Lagos Stock Exchange) since January 1970, is navigating this delisting process as part of its strategic corporate decisions. The bank’s first-quarter report for 2023 revealed a significant surge in profit after tax, soaring by 127.6 percent to N12.6 billion. Non-interest income also experienced substantial growth, increasing by 122.7 percent quarter-on-quarter to N25.6 billion. This remarkable performance is attributed to the trading portfolio and other income lines such as fees and commissions.
As Union Bank progresses through this delisting phase, stakeholders and market observers keenly watch for further developments and the implications of these changes on the financial landscape.