Titan Trust Bank, has formally acquired 89 per cent of Union Bank of Nigeria (UBN) Plc in an off-market deal worth N191 billion.
The acquisition was completed on Monday, May 30, 2022.
The acquisition stands as the biggest in recent years, dwarfing the N120 billion Crown Mills paid to acquire Dangote Flour Mills and the N91 billion NIPCO paid for a majority share in Mobil Nigeria, capital market analyst noted.
Also, this is the biggest deal in the banking space since the N72 billion merger between Access Bank and Diamond Bank Plc.
Titan Trust, a new financial institution, bloated the entire stock market trade metrics on Monday, as volume traded came in at 27.565 billion units, while traded value settled at N194.356 billion.
In December 2021, the board of UBN announced that its investors, Union Global Partners Limited, Atlas Mara Limited and other shareholders, have reached an agreement with Titan Trust Bank Limited to divest their shareholding in Union Bank to TTB.
Titan Trust Bank, the newest national commercial bank in Nigeria, commenced operation in October 2019, according to a statement announcing the deal.
“The agreement, which is subject to regulatory approvals and other financial conditions, will upon completion, transfer 89.39 per cent of Union Bank’s issued share capital to TTB,” it said.
Speaking on the transaction, the chairman of Union Bank, Mrs Beatrice 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 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. A solid foundation for our incoming investors to build on as we move into a new era for the bank.”
Also, the chairman of 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,” he added.
The chief executive officer, of Union Bank, Mr Emeka Okonkwo, said: “this transaction marks
a significant milestone in the journey of our 104-year-old bank.
“While thanking our current investors for their unwavering commitment to the bank over the years, we welcome our new core investor, TTB.
“We recognise 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.”
