Union Bank of Nigeria Plc's delisting from the stock market will result in a N193.7 billion decrease in the total value of shares listed on the Nigerian Exchange Limited, or NGX.
Union Bank's market capitalization, which was N193.7 billion when it was listed on the NGXchange (previously the Nigerian Stock Market) in 1971, would be subtracted from the Exchange's overall market capitalization, which closed yesterday at N38.940.
Union Bank sent a notice to the NGX, stating that it is finalizing the process of obtaining approval to delist its shares from NGX. As a result, shareholders of the bank will receive a Scheme Consideration of N7.70 per share. This notice was sent in compliance with The Nigerian Exchange (NGX) Rule Book and the Amendments to the Listing Rules, and it is addressed to all of our valued stakeholders.
“Consequent upon the approval, the Registrars will remit the Scheme Consideration to all shareholders of the Bank, pursuant to the decision of the Court-Ordered Meeting and the subsequent sanction by the Federal High Court. All shareholders of the Bank are enjoined to ensure that their accounts have been duly mandated, for the purpose of receiving the Scheme Consideration.
Commenting on this development, Mudassir Amray, CEO of Union Bank of Nigeria said: “This move is an effort to attract larger private investments to reconsolidate our position as one of the top pioneer Banks in Nigeria. We remain committed to deliver value to our customers, employees and shareholders through superior solutions. We appreciate the support of the Central Bank of Nigeria, Securities Exchange Commission, Nigerian Exchange Group (NGX) and every other agency and parastatal that were instrumental to achieving this.”
One of Nigeria's oldest and most reputable financial organizations, Union Bank of Nigeria was founded in 1917.
Recall that following the conclusion of the sale of a majority shareholding by core investors to Titan Trust Bank Limited, a subsidiary of TGI Group, Union Bank received an offer from Titan Trust Bank Limited, its core shareholder, to purchase the shares of all minority shareholders in Union Bank.
The application to delist Union Bank of Nigeria Plc from the Nigeria Stock Market was prompted by the acquisition of the minority stake. By virtue of a plan of arrangement between the bank and its shareholders—the minority shareholders—this result was brought about by Section 715 of the Companies and Allied Matters Act 2020 (as amended).
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