Nigeria’s Union Bank has received an offer from Titan Trust Bank Limited to acquire all of the minority shares in the bank.
Titan Trust Bank Limited, which is a core shareholder in Union Bank, has informed the board of directors of its plans to implement the acquisition through a Scheme of Arrangement.
According to the Scheme of Arrangement, all outstanding shares of Union Bank not already held by Titan Trust will be acquired for a consideration of N7.00 (Seven Naira) per share. This acquisition is expected to strengthen the position of Titan Trust Bank in the Nigerian financial services industry.
The Central Bank of Nigeria and Securities & Exchange Commission have granted their ‘No Objection’ to the acquisition, and the terms and conditions of the Scheme will be outlined in the Scheme Document which will be sent to all shareholders of Union Bank.
Minority shareholders in Union Bank now have the opportunity to exit their investment at a premium price. The acquisition by Titan Trust Bank Limited will likely strengthen its position in the Nigerian financial services industry and create new opportunities for growth.
A Court-Ordered Meeting of the Bank’s shareholders will be convened once the Federal High Court grants an order, and the Scheme Document will be dispatched to all shareholders. The acquisition of Union Bank of Nigeria Plc’s minority shares by Titan Trust Bank Limited is expected to be completed after the shareholders’ meeting.
The proposed acquisition of Union Bank of Nigeria Plc’s minority shares by Titan Trust Bank Limited is yet another example of the consolidation trend in Nigeria’s financial services industry. The acquisition is expected to create a stronger and more competitive financial services sector, which is good news for the country’s economy.
