By Tony Obiechina, Abuja
After acquiring majority shareholdings of Union Bank Nigeria Plc, Titan Trust Bank Limited (TTB) has taken over ownership of the first generation bank.
The Bank is buying 89.39 per cent of the issued capital of Union Bank, the two companies announced on Thursday.
Union Bank of Nigeria was established in 1917 and listed on the Nigerian Stock Exchange in 1971.
Titan Trust Bank Limited, one of Nigeria’s newest commercial banks, commenced operations in October 2019.
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 TTB.
The Board of Union Bank of Nigeria Plc in a notification to the Nigerian Exchange Limited (NGX) and the Securities Exchange Commission explained that the agreement is subject to regulatory approvals and other financial conditions.
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.
“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.”
The chairperson of Titan Trust Bank, Tunde Lemo, said the Board of Titan Trust Bank and it’s 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.
Lemo, a former Deputy Governor of the Central Bank of Nigeria said, “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.”
The Chief Executive Officer of Union Bank, Emeka Okonkwo, said: “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.”
Also the Chief Executive Officer of Titan Trust Bank, 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.”
