Following an offer from its core shareholder, Titan Trust Bank Limited, to acquire the shares of all minority shareholders, Union Bank of Nigeria (UBN) yesterday announced plans to delist from the Nigeria Exchange Limited (NGX) at a scheme consideration of N7.70 kobo per share for shareholders.
The announcement is coming few weeks after one of the consumer goods manufacturing giants, PZ Cussons Nigeria, rated 36th most valuable stock on the NGX with a market capitalisation of N75.8 billion, with about 0.203 per cent of the Nigerian equities market announced plans to acquire shares held by other shareholders of PZ Cussons Nigeria Plc (PZCN) and subsequently delist from the exchange.
The bank, with a market capitalisation of N194 billion, said it is currently finalising the process of obtaining approval to delist its shares from NGX, upon which shareholders of the bank will receive a Scheme Consideration of N7.70 per share.
It noted that the acquisition of the minority shareholding has led to the application to delist Union Bank of Nigeria Plc from the Nigeria Stock Market.
The development was implemented by way of a scheme of arrangement between the bank and the bank’s shareholders (the minority shareholders), by Section 715 of the Companies and Allied Matters Act 2020 (as amended).
Chief Executive Officer of the bank, Mudassir Amray, said: “This move is an effort to attract larger private investments to reconsolidate our position as one of the top pioneer banks in Nigeria.”
Reacting on the development, President of NewDimension Shareholders of Nigeria, Patrick Ajudua, said: “The delisting of Union Bank from the stock exchange after 52 years of listing is of great concern to us as shareholders of the bank.
“We call on the regulator to ensure that the interest of minority shareholders is well protected in determination of exit price as that will assuage the pain of shareholders post delisting. Effort must also be made to address factors responsible for delisting of companies from stock exchange as this is becoming an issue of great concern to shareholders.”
