Titan Trust Bank Limited (TTB) yesterday completed the acquisition of majority equity stake of 89.39 per cent in Union Bank of Nigeria (UBN) Plc, effectively becoming the controlling investor in Nigeria’s second oldest bank.
Trading report at the Nigerian Exchange (NGX) yesterday indicated that a total of 27.34 billion ordinary shares of UBN were swapped in block divestment. Market sources said the cross deal was the culmination of the transaction between TTB and Union Global Partners Limited, Atlas Mara Limited and other shareholders.
A total of 19 cross deals were done through the negotiated window of the NGX at N7 per share, indicating transaction value of N191.4 billion.
The transfer of shares effectively implied approval of the transaction by all regulators including the Central Bank of Nigeria, Securities and Exchange Commission and NGX.
Earlier, Chairman, Union Bank of Nigeria, Mrs. Beatrice Hamza Bassey said UBN was 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,’’ Hamza Bassey 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.”
Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo said: “This transaction marks a significant milestone in the journey of our 104-year-old Bank. While thanking our current investors for their unwavering commitment to the Bank over the years, we welcome our new core investor, TTB. We recognise 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.”
Chief Executive Officer, Titan Trust Bank, 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 synchronised modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
Rothschild & Cie acted as financial adviser and White & Case LLP and Banwo & Ighodalo acted as legal advisers respectively, to the selling shareholders of Union Bank.
Citigroup Global Markets Limited acted as financial adviser, Pricewaterhouse Coopers as due diligence partner, Norton Rose Fulbright LLP, Drew Law Practise and G. Elias & Co. acted as legal advisers respectively to TTB.
