Union Bank of Nigeria Plc has disclosed to its shareholders and the Nigerian Exchange Limited the notification received from Titan Trust Bank over the mandatory takeover (MTO) that will be made to the shareholders of Union Bank.
This is following a disclosure signed by Somuyiwa Sonubi, Union Bank’s (the Bank) secretary and filed with the Nigerian Exchange Group (NGX).
According to the Bank, the Mandatory Takeover Offer is for 1,927,532,558 (one billion, nine hundred and twenty-seven million, five hundred and thirty-two thousand, five hundred and fifty-eight) ordinary shares of 50 (fifty) Kobo each in the Bank and represents 6.59% of the shareholding of Union Bank of Nigeria Plc.
Titan Trust has received the Securities and Exchange Commission’s approval to launch the MTO which is priced at N7.00 (seven Naira) per ordinary share – the price at which the Block Trade was executed.
What Union Bank is saying
“The Qualification Date for the MTO is 5.00 pm 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 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.”
What you need to know
This MTO is coming after Titan Trust Bank, a subsidiary of TGI Group made a purchase of core investors’ majority shareholding of Union Bank of Nigeria Plc, following Union Bank’s agreement to sell its majority stake to Titan Trust Bank Ltd.
In the transaction, Union Global Partners Ltd (64.98%) and Atlas Mara (25.53%), the core investors in Union Bank sold a combined 89.39% of their primary stakes in Union Bank to Titan Trust Bank.
The deal is particularly remarkable as a 3-year-old Titan Trust Bank acquires a 104-year Union Bank.
Following the acquisition was the retirement of some members of the board of directors of Union Bank. Consequently, new members were appointed.
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