Titan Trust Bank Limited has opened application list for a N13.5 billion takeover bid for minority shareholdings in Union Bank of Nigeria (UBN) Plc, in a move that may lead to delisting of the first generation bank from the Nigerian Exchange (NGX).
Offer circular for the mandatory takeover offer (MTO) at the weekend showed that Titan Trust Bank is offering to acquire about 1.928 billion ordinary shares of 50 kobo each of UBN held by minority shareholders at N7 per share. The application list for the MTO is scheduled to close on November 23, 2022.
With the acquisition of 1.928 billion shares under the MTO, Titan Trust Bank, which had acquired 27.337 billion ordinary shares or 93.41 per cent majority equity stake in UBN in May 2022, will have 100 per cent holding of the first generation bank.
Titan Trust Bank had in May 2022 completed the acquisition of the shares of UBN’s major shareholders, including Union Global Partners Limited (UGPL), Atlas Mara Limited (ATMA), Standard Chartered Bank (SCB), Montane Partners West Africa Limited (Montane) and Mr. Emeka Emuwa, resulting in a transfer of 93.41 per cent of Union Bank’s issued share capital to Titan Trust. UGPL and ATMA had taken over the first generation bank in 2012.
After the full acquisition of the minority shares, Titan Trust Bank at the weekend indicated it will delist UBN and reregister the bank as a private limited liability company, ending 52 years of active listing and trading on the shares of the first generation bank at the stock market.
Re-registration of UBN as a private company implies that beyond delisting from the NGX, its shares will also not be traded on the NASD OTC Securities Exchange, the platform for trading in the shares of unlisted public limited liability companies. Incorporated in 1969, UBN was listed on the NGX in 1970.
SOURCE: THENATION
