Titan Trust Bank notifies NGX of 6.59% MTO to Union Bank shareholders

Kayode Tokede

Union Bank of Nigeria Plc yesterday said it has received notification from Titan Trust Bank Limited a Mandatory Takeover Offer (MTO) of 1,927,532,558 ordinary shares of 50 kobo each in the Bank.

This represents 6.59 per cent of the shareholding of Union Bank of Nigeria.

The Company Secretary, Union Bank of Nigeria, Somuyiwa Sonubi in a statement said Titan Trust has received the Securities and Exchange Commission’s (SEC) approval to launch the MTO.

According to his statement, the MTO is priced at N7.00 per ordinary share; being the price at which the Block Trade was executed.

He explained further that the qualification date for the MTO is on October, 31st  2022 – which is the date on which the names of shareholders must be in the Register of Members and  is the settlement date for trades that are executed on  October, 26th  2022.

“For clarity, all trades must be executed by Wednesday 26th October, 2022 in order to qualify to participate in the MTO, and only shareholders whose names are in the Register of Members on 31st October, 2022 will be able to participate in the MTO,” the statement added.

In December 2021, Union Bank had announced that subject to regulatory approvals, it would “transfer 89.39 percent of its share capital to TTB”.

The agreement is between its majority shareholders — Union Global Partners Limited, Atlas Mara Limited, among others – and TTB.

Union Bank also said it has completed the divestment of its entire shareholding interest (direct and indirect) in its subsidiary, Union Bank (UK) Plc, to all the shareholders in its records as of March 4, 2022, “pro rata to their existing shareholding interests in the bank”.

Consequently, UBUK is not included in the transaction with Titan Trust Bank, the financial institution said.