Union Bank Bids Adieu: Delists from Nigerian Exchange After 52-Year Stint

After a remarkable 52-year presence on the Nigerian Stock Exchange, Union Bank of Nigeria Plc has made a significant announcement regarding its departure from the NGX. The decision, as revealed in a corporate filing on the NGX website, suggests a pivotal shift in the bank’s strategic direction.

In the documentation signed by Somuyiwa Sonubi, the Company Secretary of Union Bank, it is outlined that the bank is contemplating a payout of N7.70 per share to its shareholders as part of its scheme of consideration. This proposed scheme will be implemented once a decision is reached during the Court-Ordered Meeting and subsequent approval is granted by the Federal High Court. The process will involve the Registrars distributing the Scheme Consideration to all shareholders.

It’s worth noting that at the close of 2021, Titan Trust Bank (TTB), spearheaded by former CBN Deputy Governor Tunde Lemo, secured approval from the Central Bank of Nigeria (CBN) to acquire an 89.4% stake in Union Bank of Nigeria. Fast forward to June 2022, and TTB successfully completed the acquisition, obtaining a commanding 93.4% stake in the bank.

The subsequent development occurred in May 2023 when TTB unveiled its intention to further solidify its ownership by offering N7 per share to acquire the remaining shares of Union Bank of Nigeria, aiming for complete control with a 100% ownership stake. This strategic move signals TTB’s commitment to a comprehensive consolidation of Union Bank under its umbrella.

As of the closing bell on November 13, 2023, Union Bank of Nigeria (UBN) saw its stock conclude the trading day at N6.65. The dynamics surrounding this stock, particularly in the context of the impending delisting and TTB’s aggressive acquisition strategy, have added an extra layer of complexity to the unfolding narrative.

The decision to delist from the NGX, coupled with the proposed payout to shareholders, reflects Union Bank’s response to the evolving landscape of the financial sector. It raises questions about the motivations behind such a strategic shift and how it aligns with the broader vision of both Union Bank and Titan Trust Bank.

The regulatory approvals and court-mandated processes underscore the meticulous legal framework within which such transitions take place. The Federal High Court’s role in approving the decision is a crucial step, emphasizing the need for a transparent and legally sound process in major corporate actions.

The backstory of Titan Trust Bank’s gradual acquisition of Union Bank brings to light the intricacies of corporate maneuvers within the Nigerian banking sector. TTB’s ascent to a majority stake and subsequent plans for complete ownership portray a strategic chess game in which institutions strategically position themselves for long-term success and dominance.

The stock market’s response to these developments, as reflected in Union Bank’s closing price, adds an element of anticipation and speculation. Investors, analysts, and industry observers are likely to closely monitor how this unfolding story impacts the valuation and perception of Union Bank in the financial market.

This development marks a crucial juncture in the trajectory of Union Bank, and the evolving narrative will undoubtedly attract attention from various stakeholders, including shareholders, regulatory bodies, and market analysts. As Union Bank prepares to exit the NGX, the aftermath of this decision will likely have ripple effects that extend beyond the confines of the banking sector.

In conclusion, Union Bank of Nigeria’s decision to delist from the NGX and the associated payout to shareholders adds a new chapter to the bank’s storied history. The ongoing transition, orchestrated by Titan Trust Bank, exemplifies the dynamic nature of the Nigerian financial landscape and the strategic maneuvers employed by key players in the sector. As the story continues to unfold, it will be fascinating to observe how this decision shapes the future trajectory of both Union Bank and Titan Trust Bank in the ever-evolving realm of Nigerian banking and finance.