Titan Trust Bank acquires majority stake in Union Bank

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.