By Chinyere Joel-Nwokeoma
Union Bank of Nigeria (UBN) Plc on Thursday announced a proposed divestment of majority shareholding interest in the bank to Titan Trust Bank Ltd.
Union Bank Plc was founded in 1917, while its purchaser, Titan Trust Bank came into existence barely two years ago.
The UBN Company Secretary, Somuyiwa Sonubi, said this a statement posted on the Nigerian Exchange Ltd (NGX) website tilted: “Proposed Divestment of Majority Shareholding Interest in Union Bank of Nigeria Plc.”
The statement said the board of UBN had received a notification from Union Global Partners Ltd. (UGPL), the holder of majority shareholding in Union Bank of the execution of a Share Sale and Purchase Agreement.
It said the agreement was between UGPL, certain other existing shareholders of Union Bank (as sellers) and Titan Trust Bank Ltd. (as Purchaser) for the sale of an aggregate 89.39 per cent of the issued share capital of Union Bank held by the Sellers, to the Purchaser.
The statement said the completion of the transaction was subject to obtaining applicable regulatory approvals and the fulfilment of certain conditions precedent.
Commenting on the transaction: Chair, Union Bank, Mrs Beatrice Hamza Bassey, congratulated all the parties involved in the transaction.
“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,” Bassey said.
Also commenting, Chair, Titan Trust Bank, Mr Tunde Lemo, said the transaction made a key step for Titan Trust.
“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,” Lemo said.
To the Chief Executive Officer, Union Bank, Mr Emeka Okonkwo, the transaction marks a significant milestone in the journey of the bank.
“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,” Okonkwo said.
The 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 synchronised modular strategy.
“We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders,” Amry said.
(NAN)
