An 89.39 per cent stake in Union Bank Plc has been acquired by Titan Trust Bank Limited (TTB), the first generation back announced yesterday.
The new investment has put TTB in a position to take over one of Nigeria’s oldest back.
According to the Board of Union Bank, the stake came from the shares divested by its investors – Union Global Partners Limited, Atlas Mara Limited and other shareholders.
In a notice on the acquisition sent to the Nigeria Exchange Limited (NGX) and Securities Exchange Commission (SEC), the board said the investors have reached an agreement with TTB to divest their shareholding in Union Bank.
The agreement, which is subject to regulatory approvals and other financial conditions, will upon completion transfer 89.39 per cent of Union Bank’s issued share capital to TTB.
Commenting on the transaction: Union Bank Chairman, Mrs. Beatrice Hamza Bassey said: “On behalf of the Board, we congratulate all the parties involved in reaching this phase of the transaction and the Board looks forward to supporting the next steps to ensure a seamless completion of the process following regulatory approvals.
“We are grateful to our current investors whose significant and consequential investments over the past nine years facilitated the transformation of Union Bank, one of Nigeria’s oldest and storied institutions.
“Today, the Bank is well-positioned with an innovative product offering, a growing customer base of over six million and consistent year on year profitability. This is a solid foundation for our incoming investors to build on as we move into a new era for the Bank.”
TTB Chairman Tunde Lemo, said: “The Board of Titan Trust Bank and our key stakeholders are delighted as this transaction marks a key step for Titan Trust in its strategic growth journey and propels the institution to the next level in the Nigerian banking sector.
The deal represents a unique opportunity to combine Union Bank’s longstanding and leading banking franchise with TTB’s innovation-led model which promises to enhance the product and service offering for our combined valued customers.”
Union Bank’s Chief Executive Officer Emeka Okonkwo said: “This transaction marks a significant milestone in the journey of our 104-year old Bank. Whilst thanking our current investors for their unwavering commitment to the Bank over the years, we welcome our new core investor, TTB.
“We recognise the strategic fit between the two institutions and expect that this deal will deliver the best outcome for our employees, customers and stakeholders. We look forward to collectively writing the next exciting chapter for Union Bank.”
The Chief Executive Officer of TTB, Mudassir Amray, said: “After completing over two years of operations with aggressive organic growth, we are excited to have an opportunity for a significant leap forward in market share. UBN’s widespread presence, state of the art technology platform, quality staff and strong brand loyalty fits well with our synchronized modular strategy.
“We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
Rothschild & Cie acted as financial adviser and White & Case LLP and Banwo & Ighodalo acted as legal advisers respectively, to the selling shareholders of Union Bank.
Citigroup Global Markets Limited acted as financial adviser, Pricewaterhouse Coopers as due diligence partner, Norton Rose Fulbright LLP, Drew Law Practise and G. Elias & Co. acted as legal advisers respectively to TTB.