A New Beginning: Union Bank sold to Titan Trust Bank, a new Vibrant Commercial Bank founded in 2019
- Union Bank, one of Nigeria's oldest banks has been acquired by Titan Trust Bank after its shareholders sold 88.39 per cent of their shares
- Titan Trust Bank is owned by Tunde Lemo the Chairman of Nigerian Fintech company, Flutterwave
- Union was established in 1917 and listed on the Nigerian Stock Exchange in 1971 and remains one of Nigeria’s long-standing and most respected financial institutions
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Union Bank is getting a new owner this followed an agreement by Union Global Partners Limited, Atlas Mara Limited and other majority shareholders to divest 88.39 per cent shareholding in Union Bank to Titan Trust Bank.
The board of Union Bank of Nigeria Plc disclosed this in a notification to the Nigerian Exchange Limited (NGX) and the Securities Exchange Commission on Thursday, 23 December 2021, Vanguard reports.
The statement explained 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.
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What the two companies are saying
Commenting on the transaction, the Chairman, 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.
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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 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.”
Titan Trust Bank speaks on the acquisition
For the chairman, Titan Trust Bank, Tunde Lemo he 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.”
More comments
Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo noted:
“This transaction marks a significant milestone in the journey of our 104-year old Bank. Whilst thanking our current investors for their unwavering commitment to the Bank over the years, we welcome our new core investor, TTB.
"We recognize 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.
On his part, Chief Executive Officer, Titan Trust Bank, Mr. 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 synchronized modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
FlourMills Acquires Honeywell
In a related story, Flour Mills of Nigeria (FMN) has reached an agreement to buy its rival Honeywell Group Limited (HGL).
Oba Otudeko, chairman, Honeywell FlourMills Plc (HFMP) is key to the deal as he agreed to sell his indirect stake of 71.69% FMN.
FlourMills of Nigeria is also looking at buying out 5.06 % First Bank of Nigeria Holdings equity in Honeywell FlourMills.
Source: Legit.ng
