Categories: Banking Sector

Union Bank of Nigeria Adjusts Stake Acquisition Price Amidst Delisting Plans

Union Bank of Nigeria has announced a revision in the stake acquisition price for minority shareholders, increasing it from N7 per unit to N7.70.

The disclosure was made in a statement signed by Company Secretary Somuyiwa Sonubi on Tuesday, as the bank progresses towards the final stages of its delisting from the Nigerian Exchange Limited.

The statement highlighted the bank’s commitment to compliance with The Nigerian Exchange Rule Book and Amendments to the Listing Rules.

It stated, “Union Bank of Nigeria Plc 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.”

In May, Titan Trust Bank Limited, the core investor in Union Bank, had announced intentions to acquire the shares of minority shareholders in the bank.

Union Bank, one of Nigeria’s oldest lenders, saw Titan Trust Bank Limited acquire the controlling stake in 2022.

Upon regulatory approval, the statement clarified that the Registrars would disburse the Scheme Consideration to all shareholders in line with the decision of the Court-Ordered Meeting and subsequent approval by the Federal High Court.

Union Bank’s first-quarter report for 2023 revealed impressive financial performance, with a 127.6% increase in profit after tax to N12.6 billion.

Non-interest income also witnessed robust growth, rising by 122.7% quarter-on-quarter to N25.6 billion, driven by the trading portfolio’s performance and increased income from fees and commissions.

The bank’s strategic moves reflect its commitment to shareholder value and financial resilience.

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