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.