“We Want All”: Titan Trust to Spend Over N12bn to Take Complete Control of Union Bank, CBN Makes Decision
- Titan Trust Bank Limited intends to purchase the stocks held by the minority shareholders of Union Bank
- The acquisition of the minority shareholders' shares in Union Bank by Titan Trust Bank Limited has been approved by the CBN
- Union Bank is the second-oldest lender in Nigeria, while Titan Trust Bank was licensed in 2019
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Titan Trust Bank Limited, the core investor in Union Bank, has announced plans to acquire the shares of minority shareholders in Union Bank.
In a corporate filing on the Nigerian Exchange on Monday, May 8, 2023, the company stated that the acquisition would be implemented through a Scheme of Arrangement between the bank and the bank’s shareholders.
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It also noted that the agreement is in accordance with the provisions of Section 715 of the Companies and Allied Matters Act 2020.
Titan Trust and Union Bank deal
Under the terms of the deal, Union Bank minority shares will be acquired by Titan Trust for N7.00 per share.
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Upon conducting a financial analysis of Union Bank, Legit.ng found that the minority shares amount to 1.74 billion (1741176751).
Therefore, for Titan Trust to obtain complete control of the shares at N7 per share, it will have to buy out the minority shareholders for N12.1 billion.
CBN gives go-ahead
Punch reports that the Central Bank of Nigeria and the Securities & Exchange Commission have already issued ‘No Objection’ to the transaction.
The terms and conditions of the deal will be sent to all shareholders following receipt of an order from the Federal High Court to convene a Court-Ordered Meeting of the bank’s shareholders.
History of Titan and Union Bank
Legit.ng reported in 2022 that Union Bank completed the sale of a majority shareholding to Titan Trust Bank Limited, a subsidiary of TGI Group.
Titan Trust Bank bought the controlling stake in Union Bank from Atlas Mara Limited and Union Global Partners Limited.
Access on top, Wema 11th: List of Nigeria's biggest banks by assets
Meanwhile, in another report, the biggest commercial banks in Nigeria have been ranked according to their assets.
Access Bank leads the table, while Wema Bank is in the 11th position with N1 trillion assets as of the end of 2022.
A solid asset base indicates that a business has resources it can use to generate revenue and profits.
Source: Legit.ng
