Some of Nigeria’s leading legal brands have acted as Legal Advisers in the mega divestment of shareholders of Union Bank Plc to Titan Trust Bank (TTB), the newest national commercial bank in Nigeria which started operation in October 2019.
While Banwo & Ighodalo acted alongside White & Case LLP as Legal Advisers to the selling shareholders of Union Bank, G. Elias & Co. acted as Legal Advisers to TTB alongside Norton Rose Fulbright LLP, Drew Law Practise.
The ground-breaking deal will see Union Bank’s majority shareholders, Union Global Partners Limited, Atlas Mara Ltd and other divest their shareholding in Union Bank to TTB, thereby making TTB the new majority shareholder of Union Bank. According to a notice to the NGX and Securities Exchange Commission, the agreement, which is subject to regulatory approvals and other financial conditions, will upon completion transfer 89.39% of Union Bank’s issued share capital to TTB.
Reacting 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.”
Also the chairman, Titan Trust Bank, Mr. Tunde Lemo, OFR 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.” He said
On his part, the executive Officer, Union Bank, Mr. Emeka Okonkwo stated, “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.
The Chief Executive of 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.”
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank has a network of over 280 sales and service centers across Nigeria.