In a historic move, Union Bank of Nigeria Plc has declared its intention to delist from the Nigerian Stock Exchange (NGX) after 52 years of being listed. The announcement, made through a corporate filing on the NGX website and obtained by Nairametrics, revealed the bank’s decision to exit the stock exchange.
According to the document signed by Somuyiwa Sonubi, Union Bank’s Company Secretary, the bank is considering a payout of N7.70 per share to its shareholders as part of its scheme of consideration. This payout will be facilitated by the Registrars following the decision made during the Court-Ordered Meeting and the subsequent approval by the Federal High Court.
The development follows the approval granted at the end of 2021 for Titan Trust Bank (TTB), led by former CBN Deputy Governor Tunde Lemo, to acquire an 89.4% stake in Union Bank of Nigeria. In June 2022, TTB successfully completed the acquisition, obtaining a 93.4% stake in the bank. A strategic move was unveiled in May 2023, announcing TTB’s plan to pay N7 per share to acquire the remaining shares of Union Bank, aiming for 100% total ownership.
As of the close of trading on November 13, 2023, Union Bank of Nigeria (UBN) shares closed at N6.65. The impending delisting marks a significant transformation in Union Bank’s corporate structure, with the payout reflecting a gesture toward its shareholders in the wake of this strategic shift. The move is expected to undergo finalization pending court decisions and regulatory approvals.
