Titan Trust Bank Limited, the newest national commercial bank in Nigeria is set to acquire an 89.4 percent stake in Union Bank of Nigeria Plc.
This followed an agreement reached by Union Global Partners Limited and other major shareholders to divest 89.39 percent shareholding in Union Bank to Titan Trust Bank.
In May 2021, Investors King reported that Atlas Mara Limited, a London Stock Exchange-listed company, was looking to offset its 49.97 percent stake in Union Bank of Nigeria Plc and exit Africa. Zenith Bank, Access Bank and others were reportedly in talks with Atlas Mara to acquire its stake in Union Bank, according to a Bloomberg report.
In a not so surprising statement, Union Bank of Nigeria Plc on Thursday announced it has received notification from Union Global Partners Ltd and other existing shareholders of the bank (presumed to be Atlas Mara Limited and other minority holders) of their intentions to relinquish a combined 89.39 percent stake in Union Bank to a new buyer, Titan Trust Bank.
The board of Union Bank of Nigeria Plc disclosed this in a statement signed by Somuyiwa Sonubi, Company Secretary and obtained by Investors King. The bank added that the agreement, which is subject to regulatory approvals and other financial conditions, would upon completion transfer 89.39 percent of Union Bank’s issued share capital to Titan Trust Bank.
Commenting on the development, the Chairperson of Union Bank, Mrs. Beatrice Hamza Bassey 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.”
On his part, the Chairman of 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.”
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank is one of Nigeria’s long-standing and most respected financial institutions. The Bank has a network of over 280 Sales and Service Centers across Nigeria.
Similarly, Titan Trust Bank is the newest national commercial bank in Nigeria. Started by a former CBN Deputy Governor, Tunde Lemo, It commenced operation in October 2019 with a strong capital base and demonstrated precision in the execution of its strategy by showing tremendous growth, even in difficult times.
Edited by Samed Olukoya.
