This followed an agreement by Union Global Partners Limited,
Atlas Mara Limited and other majority shareholders to divest 88.39 per cent
shareholding in Union Bank to Titan Trust Bank.
The board of Union Bank of Nigeria Plc in a notification to
the Nigerian Exchange Limited (NGX) and the Securities Exchange Commission on
Thursday, explained that the agreement, which is subject to regulatory
approvals and other financial conditions, would upon completion transfer 89.39
percent of Union Bank’s issued share capital to Titan Trust Bank.
Commenting on the transaction, the Chairman, Union Bank,
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.”
According to the chairman, Titan Trust Bank, Mr. Tunde Lemo,
OFR: “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.” He said.
Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo
noted: “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 recognize 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.
On his part, Chief Executive Officer, Titan Trust Bank, Mr.
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.”
According to the statement, 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, while
Citigroup Global Markets Limited also 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.
Established in 1917 and listed on the Nigerian Stock
Exchange in 1971, Union Bank is a household name and one of Nigeria’s
long-standing and most respected financial institutions. The Bank has a network
of over 280 Sales and Service Centers across Nigeria. Union Bank is focused on
Retail, Commercial and Corporate Banking businesses.
Titan Trust Bank is one of the newest national commercial
banks in Nigeria.
The lender commenced operation in October 2019 with a strong
capital base and has demonstrated precision in execution of its strategy by
showing tremendous growth, even in difficult times.
In just two years of existence, the bank has grown to earn
the confidence of the banking public, offering quality banking services at a
cutting-edge technology that enables its customers to enjoy banking services
through a wide range of channels.
Titan Trust Bank has received industry-wide recognition,
having been named ‘Best Trade Finance Provider in Nigeria’ for 2022 (for the
second year running) by the New York-based Global Finance Magazine World’s Best
Trade Finance Providers Awards and ‘Best New Commercial Banking Brand’ and
‘Fastest Growing Digital Banking Brand’ for 2021.
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