Nigeria’s newest national commercial bank, Titan Trust Bank (TTB) has acquired Union Bank of Nigeria after core investors sold majority stake, which totalled at 89.39%.
A statement on Thursday signed by both TTB and Union Bank said the agreement, which is subject to regulatory approvals and other financial conditions, will upon completion transfer 89. 39% of Union Bank’s issued share capital to TTB.
“The Board of Union Bank of Nigeria Plc (Union Bank) today notified the
NG X and Securities Exchange Commission that its investors Union Global Partners Limited, Atlas Mara Limited and other shareholders have reached an agreement with Titan Trust Bank Limited (to divest their shareholding in Union Bank to TTB,” the statement read.
Speaking on the acquisition of one of Nigeria’s most iconic bank, 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.
She noted that, “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.”
Also commenting on the deal, chairman Titan Trust Bank, Mr. 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,” said Lemo, a former deputy governor of Nigeria’s Central Bank.
The CEO of Union Bank described the acquisition as a significant milestone. “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,” CEO Emeka Okonkwo said.
Adding that, We look forward to collectively writing the next exciting chapter for Union Bank.
Similarly, the CEO of Titan Trust Bank, Mr. Mudassir Amray described the acquisition as a leap in the right direction. “After completing over two years of operation s 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 be nefit of our staff, customers, shareholders, and stakeholders.”
According to the joint 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.
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.
