Titan Trust Bank Limited, a bank barely 3 years in operation, is acquiring104 Years old Union Bank of Nigeria Plc (NGX: UBN).
In a corporate action released to the Nigerian Exchange Limited and the Investing public, The Board of Directors of UBN gave details of a proposed divestment of majority Shareholding Interest in Union Bank of Nigeria Plc.
According to the announcement seen by Investogist, the Board stated that it had 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”).
A review of the Annual report of UBN for the financial year ended 31st December 2020, shows that only two shareholders held more than 5% of the issued share capital of the Bank. These shareholders are likely the ones involved in this Share Sales and Purchase Agreement;
- Atlas Mara Limited held 7,471,752,753 shares, representing 25.53%.
- Union Global Partners Limited held 19,017,923,071 shares, representing 64.98%.
Rumours has been making the rounds about a potential acquisition of Union Bank Plc, and in May 2021, Investogist reported that Access Bank, Zenith Bank, & Others were in potential tussle to acquire century old UBN.
The completion of the Transaction is subject to obtaining applicable regulatory approvals and the fulfilment of certain conditions precedent.
Commenting on the transaction,
Chair of Union Bank, Mrs Beatrice Hamza Baseey 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.”
Chair, Titan Trust Bank, Mr. Tunde Lemo, OFR 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.”
About Union Bank of Nigeria Plc
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc. is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank is a trusted and recognizable brand, with an extensive network of over 300 branches across Nigeria.
he Bank currently offers a variety of banking services to both individual and corporate clients including current, savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance. The Bank also offers its customers convenient electronic banking channels and products including Online Banking, Mobile Banking, Debit Cards, ATMs and POS Systems.
Union Bank is currently a Tier 2 bank and right behind Stanbic IBTC which has a total asset of N2.7 trillion.
About Titan Trust Bank Limited
Titan Trust Bank Limited was established on the 12th of December, 2018 and obtained its National Banking license on the 26th of April 2019, to operate as a commercial bank with national authorization.
Titan Trust Bank’s license is the first National Banking license that the Central Bank of Nigeria has granted in the last ten years.
There are 3 significant institutional investors in Titan Trust with a total of 95.55%, according to the 2020 audited account, and the bank is rumoured to be owned by Indians.
The bank is led by CEO Mudassir Amray, a former Citibank executive, and Titan Trust counts Citibank as a correspondent bank.
Titan Trust made money in 2019 despite being open for only 81 working days, and has remained profitable since.
Titan Trust Bank currently has just two bank branches located in Lagos.
In June, 2021, Investogist reported that The Central Bank of Nigeria (CBN) approved Titan Trust Bank as one of the designated banks for the collection of Nigeria Export Supervision Scheme (NESS) Levy.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur