Union Bank of Nigeria plc on Tuesday announced that it has entered a share sale and purchase agreement to divest its 100 percent equity stake in Union Bank UK plc.
Union Bank in a notice to the Nigerian Stock Exchange said the sale is in line with the bank’s strategy to geographically streamline its business operations to focus on growth opportunities in Nigeria.
“Following a competitive bid process, MBU BidCo Limited, an acquisition vehicle wholly owned by MBU Capital Limited, was selected as the preferred bidder,” the bank said in the release.
The completion of the sale is subject to regulatory approvals from the relevant regulatory authorities in Nigeria and the United Kingdom.
Emeka Emuwa, chief executive officer, Union Bank, said as the banking landscape shifts towards digital and agency banking to drive financial inclusion, the Nigerian market presents robust long-term opportunities for the bank, noting that the divestment would allow the bank to channel its focus and capital towards mining those opportunities fully.
“Through the sale, we are better positioned to deliver greater value to the organisation and its stakeholders as well as continue to build the future of banking in Nigeria, the terms of the sale of UBUK delivers substantial value to our shareholders, while also entrusting its customers and trading partners to a high-quality financial services institution who will work with existing management to deliver a stronger and more profitable entity,” he said.
Chapel Hill Denham Advisory Limited acted as financial advisers while White & Case LLP and Udo Udoma & Belo-Osagie acted as UK legal advisers and Nigeria legal advisers, respectively, to Union Bank.
Syndeo Capital Limited (led by Mandeep Ahluwalia) acted as advisers to MBU Capital with Akin Gump LLP as legal advisers and PwC as financial and tax advisers.
OLUFIKAYO OWOEYE
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