Titan Trust buys 89.83% of Union Bank’s share capital

Titan Trust Bank (TTB), Nigeria’s newest national commercial bank, on Thursday acquired majority stake in Union Bank plc, one of Nigeria’s oldest lenders, by accepting 89.39 percent of Union Bank’s issued share capital.

In a statement released to the Nigerian Exchange Group (NGX) and Securities and Exchange Commission, the Board of Directors of Union Bank of Nigeria plc (Union Bank) Thursday announced that it had received a notification from Union Global Partners Limited (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 percent of the issued share capital of Union Bank held by the Sellers, to the Purchaser (the Transaction).

The statement noted further, “The agreement, which is subject to regulatory approvals and other financial conditions, will upon completion transfer 89.39 percent of Union Bank’s issued share capital to TTB.”

Commenting on the transaction, Beatrice Hamza Bassey, chair, 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.

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“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 6 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.”

Tunde Lemo, chair, Titan Trust Bank, 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 commenting, Emeka Okonkwo, CEO, Union Bank, 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.”

Mudassir Amray, CEO, Titan Trust Bank, 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.”

The market value of Union Bank was N4.60k as of Wednesday, December 22, 2021, but how much Titan Trust paid per share was not made public at the time of filing in this report.