Union Bank of Nigeria Plc has announced that Titan Trust Bank Limited on Tuesday notified the Bank of a Mandatory Takeover Offer (“MTO”) that will be made to shareholders of Union Bank.
According to a report by Tribune, a Mandatory Takeover requires that any shareholder who either: establishes new control of a firm or takes over control by transfer of an old share position also extends an offer for (to buy) the remaining shares at a fair price.
In a filing with the Nigerian Exchange Limited, Union Bank stated that the Mandatory Takeover Offer for 1,927,532,558 (one billion, nine hundred and twenty seven million, five hundred and thirty-two thousand, five hundred and fifty-eight) ordinary shares of 50 (fifty) Kobo each in the Bank represents 6.59percent of the shareholding of Union Bank of Nigeria Plc.
Titan Trust has received the Securities and Exchange Commission’s approval to launch the MTO.
The MTO is priced at N7.00 (seven Naira) per ordinary share; being the price at which the Block Trade was executed.
According to the bank, the Qualification Date for the MTO is 5.00pm on Monday 31st October, 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 Wednesday 26th October, 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.
Meanwhile, Union Bank of Nigeria Plc’s shares climbed yesterday to their pinnacle since June 14 as the market was awash with buy orders from investors following an announcement of a tender offer by Titan Trust Bank, its new majority owner.
Union Bank’s shares went up 9.32 per cent as of 09:43 WAT, 13 minutes after the market opened to trade.
That was less than one per cent shy of the 10 percent maximum daily appreciation limit set by the Nigerian Exchange.
