Union Bank Plc has announced that minority shareholders will receive N7.00 per scheme share as consideration for the transfer of shares from Titan Trust Bank Limited. This resolution was passed at Union Bank’s Court Ordered Meeting held in Lagos. The Scheme of Arrangement, which was approved by the meeting, allows for the transfer of scheme shares to Titan Trust Bank and the payment of N7.00 per share to the shareholders.
As a result of this arrangement, trading in Union Bank’s shares will be terminated, and the shares will be delisted from the Nigerian Exchange Limited (NGX). Share certificates representing the interests of the scheme shareholders will be considered dematerialized, and any dematerialized shares held with the Central Securities Clearing System Pic (CSCS) will be transferred to Titan Trust Bank.
At the close of trading last week, Union Bank’s stock price stood at N7.35 per share on the NGX.
Marketnews Thoughts: The resolution passed at the Court Ordered Meeting provides clarity on the compensation that minority shareholders of Union Bank will receive as part of the share transfer to Titan Trust Bank. It is important for shareholders to be adequately compensated when such transactions take place to protect their interests. The delisting of Union Bank’s shares from the NGX signifies the completion of the transfer process. It remains to be seen how this acquisition will impact both banks and whether it aligns with their strategic objectives.