The board of Union Bank of Nigeria Plc, on Thursday, announced the acquisition of an aggregate 89.39% stake from its majority shareholder- Union Global Partners Limited by Titan Trust Bank Limited, one of the recent operators licensed by the Central Bank of Nigeria.
A notice by Somuyiwa Sonubi, Union Bank’s Company Secretary to the Nigerian Exchange explained said the deal was by execution of a Share Sale and Purchase Agreement between UGPL, certain other existing shareholders of Union Bank (as Sellers), and Titan Trust Bank Limited (as Purchaser).
“Completion of the Transaction is subject to obtaining applicable regulatory approvals and the fulfillment of certain conditions precedent,” the notice said, quoting Mrs. Beatrice Hamza Bassey, Chair, Union Bank, as congratulating all the parties involved in reaching this phase of the transaction.
The board, she said “looks forward to supporting the next steps to ensure 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,” she added.
For Tunde Lemo, a former two-term deputy governor of the CBN, now Chair, Titan Trust Bank, “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, he continued, “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.”
Also commenting on the transaction, Chief Executive Officer, Union Bank, Emeka Okonkwo said it “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, Mudassir Amray expressed excitement at the 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 fit 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 with Union Bank, he believes, is icing on the cake of TTB, after two years of “operations with aggressive organic growth.”
According to the audited financial statement of Titan Trust Bank for the year ended December 31, 2020, three institutional investors own 95.55% state, the largest of which is Luxis International DMCC with 48.09%; followed by Magna International DMCC, 47.39%, and Aminu Yaro, 9.07%.