Trust Bank buys out Union Bank’s minority investors with N12.18bn

As part of its plans to get 100 per cent ownership of Union Bank of Nigeria Plc, majority shareholder of the bank, Titan Trust Bank Limited, has offered N12.18 billion to buy out the minority investors in the commercial bank.

In a statement to shareholders through the Nigerian Exchange Limited (NGX), Titan Trust Bank informed Union Bank’s board of its intention to acquire the remaining 1.74 billion shares in the hands of minority investors.

As of December 2022, Titan Trust Bank had a 94.5 per cent (27.52 billion shares) ownership stake in Union Bank. Titan Trust Bank first acquired a majority stake in UBN in June 2022.

The acquisition of the 1.74 billion shares or 5.97 per cent stake held by minority shareholders will give Titan Trust Bank 100 per cent ownership of Union Bank, giving the majority investors an opportunity to take the creditor private, from its current publicly-owned status.

The statement from the lender reads: “Union Bank of Nigeria Plc (“Union Bank” or “the Bank”) hereby notifies Nigerian Exchange Limited and our esteemed stakeholders that Titan Trust Bank Limited (“Titan Trust”), the Bank’s core shareholder, 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 (“the Scheme Shares”).

“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).

“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 Securities & 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.”

Recall that in December, 2021, the board of UBN announced that its investors, Union Global Partners Limited, Atlas Mara Limited and other shareholders, have reached an agreement with Titan Trust Bank Limited to divest their shareholding in Union Bank to TTB.

Titan Trust Bank, the newest national commercial bank in Nigeria, commenced operation in October 2019, according to a statement announcing the deal.