Union Bank Nigeria Plc, on Thursday announced that it has reached an agreement to sell a majority stake to Titan Trust Bank Ltd.
Titan Trust Bank chaired by former Deputy Governor of the CBN and Chairman of Flutterwave, Mr Tunde Lemo, reached an agreement with Union Bank for the acquisition of a 89.4 per cent equity stake.
This was contained in a press release published on the Nigerian Stock Exchange.
The deal will see existing core investors in Union Bank, Union Global Partners Ltd (64.98%), Atlas Mara (25.53%) and other shareholders divest their core holdings totalling 89.39% in Union Bank to Titan Trust Bank.
The deal when legally consummated will see a 2-year old Titan Trust Bank take over a 104-year-old Union Bank in a remarkable acquisitions.
Union Bank currently has a net asset of N264 billion and a total asset of N2.56 trillion. The share price gained 10% today as investors who got wind of the deal loaded up the stock. Union Bank is down 5.3% in the last year.
Reacting to the development, the chairperson of Union Bank, Beatrice Bassey, congratulated the parties involved for reaching a remarkable agreement, assuring that the board is ready and committed to supporting the new investors.
“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,” Bassey said.
Also, Lemo in his reaction said the deal offers Union Bank and Titan Trust Bank the opportunity to combine efforts together in a bid to improve services to customers.
In his words, “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.”
