BY CHINYERE OBIORA, LAGOS – One of Nigeria’s fastest-growing and customer-centric financial service providers, Titan Trust Bank Limited (TTB), has finally acquired Union Bank of Nigeria Plc.
The latest development follows months of negotiations and the agreement by Union Global Partners Limited, Atlas Mara Limited, and other majority shareholders to divest 88.39 per cent shareholding in Union Bank to Titan Trust Bank.
In a notification to the Nigerian Exchange Limited (NGX) and the Securities Exchange Commission (SEC) on Thursday, the board of Union Bank of Nigeria (UBN) Plc said that the deal, subject to regulatory approvals and other financial conditions, would upon completion transfer 89.39 percent of Union Bank’s issued share capital to Titan Trust Bank.
Chairman of Union Bank, Mrs Beatrice Hamza Bassey, who spoke on the arrangement 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 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.”
According to Mrs Bassey; “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”, adding that the transaction “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 pact, Chairman of Titan Trust Bank, Mr. Tunde Lemo, 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.”
Lemo, a former Deputy Governor of Operations and Director of the Central Bank of Nigeria (CBN), further explained that; “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.”
For the Chief Executive Officer of Union Bank, Mr. Emeka Okonkwo, the transaction represents a significant milestone in the 104-year old Bank’s participation in the global financial sector, adding; “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.”
Similarly, the Chief Executive Officer of Titan Trust Bank, Mr. Mudassir Amray described the arrangement as an exciting opportunity for a significant leap forward in market share by TTB after over two years of operations with aggressive organic growth in the nation’s banking industry.
Amray said; “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.”
Meanwhile, an official statement released on the development mentioned that Rothschild & Cie acted as the Financial Adviser while White & Case LLP and Banwo & Ighodalo acted as Legal Advisers respectively, to the selling shareholders of Union Bank.
On the other hand, Citigroup Global Markets Limited also acted as a Financial Advisor; Pricewaterhouse Coopers as a due diligence partner; while Norton Rose Fulbright LLP, Drew Law Practise, and G. Elias & Co acted as Legal Advisers respectively to TTB.
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank has a network of over 280 Sales and Service Centers across Nigeria. Union Bank is focused on Retail, Commercial and Corporate Banking businesses.
Among the nation’s newest commercial banks, Titan Trust Bank commenced operation in October 2019 with a strong capital base and has continued to demonstrate precision in the execution of its strategy by showing tremendous growth, even in difficult times.
With just two years of operations in its kitty, TTB has already earned public confidence through quality banking services at a cutting-edge technology that enables customers to enjoy banking services through a wide range of channels.
Already, the Bank, for the second consecutive year, has received industry-wide recognition, as the ‘Best Trade Finance Provider in Nigeria’ for 2021 by the New York-based Global Finance Magazine World’s Best Trade Finance Providers Awards as well as ‘Best New Commercial Banking Brand’; and ‘Fastest Growing Digital Banking Brand’ for the year 2021.
