Titan Trust Bank Limited, one of Nigeria’s newest commercial banks, is set to take over Union Bank of Nigeria Plc. ayokinews.com reports
Somuyiwa Sonubi, Union Bank’s Company Secretary, made the announcement in a statement released on Thursday.
According to Sonubi, Union Bank Plc. Board of Directors has received notification from Union Global Partners Ltd. (UGPL), the bank’s majority shareholder, of the execution of a share sale and purchase agreement between UGPL, some of the bank’s other existing shareholders, and Titan Trust Bank Limited (the purchaser) for the sale of an aggregate 89.39 percent of Union Bank’s issued share capital held by the sellers to the purchaser.
The transaction’s conclusion, however, is contingent on gaining necessary regulatory clearances and meeting certain pre-conditions.
Mrs. Beatrice Bassey, Chair of 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.”
With an innovative product offering, a rising client base of over six million, and steady year-over-year profitability, Bassey believes the bank is well-positioned.
As the bank moves into a new era, she sees such qualities as a solid platform for prospective investors to build on.
The bank and its key stakeholders, according to Titan Trust Bank Chairman, Mr. Tunde Lemo, are overjoyed since the transaction represents a big step forward in the bank’s strategic growth journey and drives the institution to the next level in the Nigerian banking sector.
He said, “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.”
Union Bank’s Chief Executive Officer (CEO), Emeka Okonkwo, termed the development to be a crucial turning point in the 104-year-old bank’s history.
He expressed gratitude to the bank’s present investors for their consistent support over the years, and welcomed their new main investor.
“We recognise the strategic feat 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.”
“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,” said Mr. Mudassir Amray who is CEO of Titan Trust Bank.
“UBN’s widespread presence, state-of-the-art technology platform, quality staff, and strong brand loyalty fits well with our synchronised modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
Union Bank is one of Nigeria’s oldest financial institutions, having been founded in 1917 and listed on the Nigerian Stock Exchange in 1971.
Titan Trust Bank commenced operations in October 2019 and has a network of over 280 sales and service centers around the country.