- The agreement to buy one of Nigeria's oldest banks, Union Bank has been completed in one of the biggest deal in recent years
- 2-year-old Titan Trust Bank paid N191 billion to complete the takeover and will now officially begin an overall
- Titan Trust Bank, the newest national commercial bank in Nigeria, commenced operation in October 2019
Titan Trust Bank has announced it has formally completed the takeover of Union Bank of Nigeria (UBN) Plc.
The two-year-old bank backed by a former Central Bank of Nigeria deputy governor, Tunde Lemo, acquire 89.4 per cent interest in Union Bank in a deal worth over N191 billion and will take its place as one of the biggest deals in recent years on the capital market.
The closest to Titan Trust Bank are N120 billion Crown Mills paid to acquire Dangote Flour Mills, N91 billion NIPCO paid for a majority share in Mobil Nigeria, N72 billion merger between Access Bank and Diamond Bank Plc.
Although a name change was noted stated again, Legit.ng in an earlier report shows the agreement was first reached on December 2021.
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A statement announcing the deal reads in part:
“Following Union Bank of Nigeria Plc’s notification in December 2021 of the execution of a Share Sale and Purchase Agreement (SSPA) between the Bank’s majority shareholders – Union Global Partners Limited, Atlas Mara Limited, et al. – and Titan Trust Bank Limited (TTB), and the subsequent receipt of all necessary regulatory approvals.
"Union Bank hereby notifies Nigerian Exchange Limited (NGX), the Securities & Exchange Commission and members of the public of the completion of the transaction under the SSPA, which effectively transfers 93.41% of Union Bank’s issued share capital to TTB."
Union Bank reactions
Speaking on the transaction, the chair, of Union Bank, Mrs Beatrice Bassey congratulated all the parties involved in reaching this phase of the transaction and the board looks forward to supporting the next steps to ensure 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. We have a solid foundation for our incoming investors to build on as we move into a new era for the bank.”
Titan Bank chair Lemo speaks
Also, the chair, Titan Trust Bank, Mr Tunde Lemo, said the transaction marked a key step for Titan Trust in its strategic growth journey and propelled 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."
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Zenith, Gtbank lead list of Nigeria's most valuable banks
Meanwhile Legit.ng in an earlier report revealed that Zenith Bank is starting 2022 as the most valuable commercial bank in Nigeria as the total value of Nigerian banks closed at N194.5 billion.
In second-most valuable bank is Guaranty Trust Bank followed by Stanbic IBTC Holdings to complete the top three most valuable banks.
Also, the aggregate market cap of all the banks under review went up by N46.6 billion to stand at N3.84 trillion.