By Peter Egwuatu
Total value of shares listed on the Nigerian Exchange Limited, NGX, is to drop by N193.7 billion following the delisting of Union Bank of Nigeria, UBN Plc from the stock market.
Union Bank, listed on the NGXchange (formerly Nigerian Stock Market) in 1971 has a market capitalization of N193.7 billion which will be removed from the Exchange’s total market capitalization which closed yesterday at N38.940.
In a notice to the NGX, Company Secretary, Union Bank said: “In compliance with The Nigerian Exchange (NGX) Rule Book and the Amendments to the Listing Rules, Union Bank of Nigeria Plc (“the Bank”) hereby notifies our esteemed stakeholders that the Bank is finalizing the process of obtaining approval to delist the Bank’s shares from NGX, upon which shareholders of the Bank will receive a Scheme Consideration of N7.70 per share.
“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.”
Union Bank of Nigeria was established in 1917 and is one of Nigeria’s long-standing and most respected financial institutions.
It would be recalled that Union Bank received an offer from its core shareholder, Titan Trust Bank Limited, to acquire the shares of all minority shareholders in Union Bank after the completion of core investors’ sale of a majority shareholding to Titan Trust Bank Limited, a subsidiary of TGI Group.
The acquisition of the minority shareholding led to the application to delist Union Bank of Nigeria Plc from the Nigeria Stock Market. This 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).
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