Titan Trust Bank Limited (TTB) has become the majority shareholder in Union Bank of Nigeria Plc.
This followed an agreement by Union Global Partners Limited, Atlas Mara Limited and other majority shareholders to sell off their 88.39 per cent shareholding in Union Bank to TTB.
The Board of Union Bank of Nigeria Plc disclosed this in a notification to the Nigerian Exchange Limited (NGX) and the Securities Exchange Commission.
Union Bank explained that the agreement, which is subject to regulatory approvals and other financial conditions, would upon completion transfer 89.39 per cent of Union Bank’s issued share capital to TTB.
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.”
Also commenting on the transaction, the Chairman, Titan Trust Bank, Mr. Tunde Lemo, said the Board of the bank and key stakeholders were delighted about the transaction, saying it marked a key step for Titan Trust in its strategic growth journey and was expected to propel 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 added.
To the Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo, the transaction marked a significant milestone in the journey of the bank’s 104 years.
”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,” he added.
On his part, 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 synchronsed modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
According to the bank, 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.
Also, 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.