In a surprising move, Union Bank of Nigeria Plc has announced that it will be delisting from the Nigerian Stock Exchange (NGX) after being listed for 52 years. The decision comes after the bank’s acquisition by Titan Trust Bank (TTB), which was promoted by former CBN Deputy Governor, Tunde Lemo.
According to a corporate filing on the NGX website obtained by Nairametrics, Union Bank announced its plans to payout N7.70 per share to its shareholders as part of its scheme of consideration. This payout will be sent to all the bank’s shareholders by the Registrars, following the decision made during the Court-Ordered Meeting and the approval given by the Federal High Court.
At the end of 2021, Titan Trust Bank obtained approval from the Central Bank of Nigeria (CBN) to acquire an 89.4% stake in Union Bank of Nigeria. Just six months later, in June 2022, TTB completed the deal, acquiring a 93.4% stake in the bank. This takeover marked a significant shift in the bank’s ownership.
In May 2023, it was announced that TTB was planning to acquire the remaining shares of Union Bank of Nigeria, ensuring 100% total ownership by TTB. As part of this plan, TTB intends to pay N7 per share to acquire the remaining shares from the bank’s shareholders.
The delisting of Union Bank from the NGX marks the end of an era for the bank, which has been a prominent player in the Nigerian stock market for over five decades. It also highlights the continued evolution and consolidation within the banking sector, with larger players acquiring smaller ones to strengthen their market position.
Investors and industry analysts will keenly watch the payout and subsequent delisting of Union Bank to assess the impact on the Nigerian stock market and the banking sector as a whole.
