Titan Trust Bank Ltd, a new commercial bank which commenced operations in October 2019, has bought over Union Bank.
Both companies announced on Thursday that Titan Trust is buying 89.39 per cent of the issued capital of Union Bank.
A statement by Union Bank read, “The Board of Directors of Union Bank of Nigeria Plc (‘Union Bank’) today announced that it has 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 between UGPL, certain other existing shareholders of Union Bank (as Sellers) and Titan Trust Bank Limited (as Purchaser) for the sale of an aggregate 89.39% of the issued share capital of Union Bank held by the Sellers, to the Purchaser (‘the Transaction’).”
The completion of the transaction is subject to obtaining applicable regulatory approvals and the “fulfilment of certain conditions precedent”.
A former deputy governor of the Central Bank of Nigeria (CBN) Tunde Lemo, who is Titan Trust Bank chairperson, said about the takeover: “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.”
Chairperson of Union Bank Beatrice 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.”
Union Bank was established in 1917 and listed on the Nigerian Stock Exchange in 1971.
Its CEO Emeka Okonkwo said he expects that the deal will deliver the best outcome for the bank’s employees, customers and stakeholders.
Also the chief executive of Titan Trust Bank 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 synchronized modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
