Union Bank to divest 89.39% of its issued share capital to Titan Trust Bank
By Uthman Salami
The Board of Union Bank of Nigeria Plc (Union Bank) has notified the NGX and Securities Exchange Commission that through its investors Union Global Partners Limited, Atlas Mara Limited and other shareholders have agreed to divest to Titan Trust Bank Limited (TTB), 89.39% of their shareholding in Union Bank.
This new development was contained in a joint statement by both banks yesterday.
According to the statement, the agreement required approval from regulatory agencies and other financial conditions regulatory approvals and other financial conditions.
However, upon completion, the agreement would “transfer 89.39% of Union Bank’s issued share capital to TTB.”
Reacting to the transaction, the Chairman of Union Bank, Mrs. Beatrice Hamza 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.”
On his part, the 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.
“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.”
Also, the CEO of Union Bank, Mr. Emeka Okonkwo said, “This transaction 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.”
In addition, the Chief Executive Officer, Titan Trust Bank, Mr. 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.”
Beside standard current and savings product portfolio, Union Bank has launched pioneering products into the Nigerian retail market including UnionKorrect, UnionGoal and UnionBetta.
Titan Trust Bank is the newest national commercial bank in Nigeria. It commenced operation in Oct 2019 with a strong capital base and has demonstrated precision in execution of its strategy by showing tremendous growth, even in difficult times.
