Union Bank Finally Delists From NGX After 52 Years of Paying Dividends

One of Nigeria’s long-lasting financial institutions, Union Bank of Nigeria, has announced its delisting from the Nigerian Stock Exchange (NGX) after 52 years of actively paying shareholders with worthy dividends. 

The bank also announced an increase in the price at which the stakes of minority shareholders would be acquired, from N7 per unit to N7.70, the report said.

This was made public by the Company Secretary, Somuyiwa Sonubi, on Tuesday, when the bank offered this as part of its final steps to delist from the Nigerian Exchange Limited.

The statement reads in part,

• In compliance with The Nigerian Exchange Rule Book and the Amendments to the Listing Rules, Union Bank of Nigeria Plc (“the Bank”) hereby notifies our esteemed stakeholders that the Bank is finalizing the process of obtaining approval to delist the Bank’s shares from NGX, upon which shareholders of the Bank will receive a Scheme Consideration of N7.70 per share.

Back Story: In May, it was also reported that Titan Trust Bank Limited, the core investor in Union Bank, announced its plan to acquire the shares of minority shareholders in the bank.

Last year, it was also reported that TitanTrust Bank Limited bought the controlling stake in Union Bank, which is the second-oldest lender in Nigeria.

After gaining approval, the Registrars will remit the Scheme Consideration to all shareholders of the Bank, according to the decision of the Court-Ordered Meeting and the subsequent sanction by the Federal High Court.

It’s been a long journey since Union Bank have been in the business of paying dividends to shareholder. However, the bank has successfully delisted from the Nigerian Stock Exchange (NGX) since it came on board to the public in 1970.

In Q1 2023, Union Bank reported that its profit after tax increased by 127.6% to N12.6bn and Non-interest income grew by 122.7 per cent quarter-on-quarter to N25.6bn at the end of Q1. This was driven by the performance of the trading portfolio, as well as other income lines such as fees and commissions.

Fidelity Bank Buys Union Bank 

In August 2022, Fidelity Bank announced that it had completed its acquisition of a 100% stake in Union Bank Plc United Kingdom(UBUK). 

The deal is said to be valued at N8.2 billion, and this shows a significant step for Fidelity Bank as it moves to expand its international footprint. 

The statement reads,

• The bank is pleased to announce the completion of the transaction and receipt of the approval of the Bank of England’s Prudential Regulatory Authority for change of control of UBUK.

• The acquisition of UBUK is in furtherance of Fidelity Bank Plc’s strategic initiatives on international expansion.