Acquisition of minority shareholders: Union Bank to convene court-ordered meeting

Union Bank Plc has received a Federal High Court order to convene a meeting to consider and approve (with or without modification) a Scheme of Arrangement between Union Bank of Nigeria Plc and the holders of its fully paid ordinary shares.

Recall that Union Bank last year announced the completion of core investors’ sale of a majority shareholding to Titan Trust Bank Limited, a subsidiary of TGI Group.

This was just as the bank announced board changes that resulted from the resignation and subsequent retirement of the directors of its board and the appointment of new ones.

In a notice of court order meeting obtained by Daily Trust, the meeting will be held on June 13, 2023, at the Shell Hall, MUSON Centre, Onikan, Lagos, which all the aforesaid shareholders are requested to attend.

Union Bank received an offer from its core shareholder, Titan Trust Bank Limited, to acquire the shares of all minority shareholders in Union Bank.

The bank noted that the transaction will be 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).

It stated that under the terms of the scheme, the Scheme Shares, being the outstanding shares of the bank not already held by Titan Trust, will be acquired by Titan Trust for consideration of N7.00 per share.

According to the statement signed by Somuyiwa Sonubi, the Company Secretary, Union Bank, by the said order, the court has appointed the Chairman of the Board of Directors, Mr Farouk Mohammed Gumel, or failing him, any other director appointed in his stead by the shareholders present at the meeting to act as chairman of the said meeting and has directed the chairman to report the results thereof to the court.