Investors in Nigeria’s capital market are unhappy with the exit prices proposed by Titan Trust Bank Limited and Ocean and Oil Development Partners Limited (OODP) to acquire all shares of minority shareholders in Union Bank Plc and Oando Plc, respectively.
The shareholders claimed that the minority shareholder considerations are inappropriate and would be addressed at the firms’ Extra Ordinary General Meetings (EGMs) to ensure fair value in terms of exit prices.
Following the transaction, the company will be delisted from the NGX and the JSE and re-registered as a private company.
Despite the fact that Oando and Union Bank are not the first companies to face a buyout proposal from their majority owners, shareholder organization representatives who engaged with Oando and Union Bank complained that the exit price offered to buy out the shareholders was “unfair”.
Also speaking, the National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, also expressed worry about how Union Bank and Oando Plc would conclude to pay shareholders N7.00 and N7.07, respectively, as an exit price.