Union Bank of Nigeria is on the verge of finalizing its delisting from the Nigerian Exchange Group (NGX), offering minority shareholders a compensation of N7.70 (USD1 = NGN802.160) per share. This move comes as part of a broader strategy to attract private investments and strengthen the bank's position in the financial sector.
The CEO of Union Bank, Mudassir Amray, expressed confidence in the plan, viewing it as an opportunity to enhance the bank's standing among Nigeria's pioneering banking institutions. The Central Bank of Nigeria and the Securities Exchange Commission have been supportive of the bank's transition, highlighting the importance of robust regulatory oversight in such significant corporate actions.
The journey towards delisting began in May 2023 when Titan Trust Bank Limited, a subsidiary of TGI Group, proposed to acquire all remaining minority shares after having secured a majority stake in Union Bank. The acquisition was completed by November 13, 2023, paving the way for Union Bank to announce its intention to delist from the NGX. The delisting process is being carried out under a scheme of arrangement as per Section 715 of the Companies and Allied Matters Act 2020.
Union Bank, with a rich history dating back to 1917, is recognized as one of Nigeria's leading financial institutions. It has played a significant role in serving small and medium-sized enterprises (SMEs) and operates an extensive network that includes over 300 service centers and more than 950 ATMs across the nation.
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