Union Bank of Nigeria is in the final stages of executing its delisting from the Nigerian Exchange Group (NGX), presenting minority shareholders with a compensation offer of N7.70 per share (USD1 = NGN802.160). This strategic move is part of a broader initiative aimed at attracting private investments and solidifying the bank’s position within the financial sector.
Mudassir Amray, the CEO of Union Bank, has expressed confidence in the delisting plan, viewing it as a pivotal opportunity to enhance the bank’s standing among Nigeria’s esteemed banking institutions. The Central Bank of Nigeria and the Securities Exchange Commission have voiced their support for the bank’s transition, underscoring the crucial role of robust regulatory oversight in significant corporate actions of this nature.
The journey toward delisting commenced in May 2023 when Titan Trust Bank Limited, a subsidiary of TGI Group, proposed the acquisition of all remaining minority shares after securing a majority stake in Union Bank. The acquisition was successfully concluded by November 13, 2023, paving the way for Union Bank to formally announce its intent to delist from the NGX. The delisting process is being executed under a scheme of arrangement in accordance with Section 715 of the Companies and Allied Matters Act 2020.
Union Bank, with a storied history dating back to 1917, stands as one of Nigeria’s foremost financial institutions. It has played a pivotal role in serving small and medium-sized enterprises (SMEs) and operates an extensive network comprising over 300 service centers and more than 950 ATMs nationwide.