Titan Trust Bank Limited (TTB) has acquired major stakes in
Union Bank of Nigeria Plc.
Somuyiwa Sonubi, Union Bank’s secretary, disclosed this in a
statement posted on the Nigerian Exchange Limited (NGX) on Thursday.
The statement said Union Global Partners Limited, Atlas Mara
Limited and other existing shareholders agreed to divest 89.39 percent
shareholding in Union Bank to TTB.
The board of directors of Union Bank of Nigeria Plc explained
that the transaction, 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 TTB.
Commenting on the transaction, Beatrice Hamza Bassey, chair,
Union Bank, 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.”
Tunde Lemo, chair, Titan Trust Bank, 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.”
Reacting to the development, Emeka Okonkwo, chief executive
officer, Union Bank, described the divestment as “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,” he added.
“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.”
Mudassir Amray, chief executive Officer, Titan Trust Bank,
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.”
The deal will see Atlas Mara relinquishing one of his strong
subsidiaries in Africa.
Last year, the financial services group announced plans to
exit African markets, seeking partners and investors to take up its stakes.
Access Bank, Nigeria’s biggest bank by customer base, had acquired some of
Atlas Mara’s assets in Botswana, Zimbabwe and Zambia.
With the announcement, Union Bank led gainers of the
Nigerian stock exchange, gaining 9.78 percent to close at N5.05 per share.
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