Titan Trust Bank Takes Over Union Bank, Nigeria's Second Oldest Bank

Thursday, December 23, 2021 / 03:12 PM / byTitan Trust Bank / Header Image Credit: Titan Trust Bank

The Board of Union Bank ofNigeria Plc (Union Bank) notified the NGX and Securities ExchangeCommission that its investors Union Global Partners Limited, Atlas Mara Limitedand other shareholders have reached an agreement with Titan Trust Bank Limited(TTB) to divest their shareholding in Union Bank to TTB. The agreement, whichis subject to regulatory approvals and other financial conditions, will uponcompletion transfer 89.39% of Union Bank's issued share capital to TTB.

Commenting on the transaction:

Chair, Union Bank, Mrs. Beatrice HamzaBassey said:

"On behalf of the Board, we congratulate all theparties involved in reaching this phase of the transaction and the Board looksforward to supporting the next steps to ensure a seamless completion of theprocess following regulatory approvals.

We are grateful to our current investors whosesignificant and consequential investments over the past nine years facilitatedthe transformation of Union Bank, one of Nigeria's oldest and storiedinstitutions. Today, the Bank is well-positioned with an innovative productoffering, a growing customer base of over six million and consistent year onyear profitability. This is a solid foundation for our incoming investors tobuild on as we move into a new era for the Bank".

Chair, Titan Trust Bank, Mr. TundeLemo, OFR said:

"The Board of Titan Trust Bank and our keystakeholders are delighted as this transaction marks a key step for Titan Trustin its strategic growth journey and propels the institution to the next levelin the Nigerian banking sector.

Thedeal represents a unique opportunity to combine Union Bank's longstanding andleading banking franchise with TTB's innovation-led model which promises toenhance the product and service offering for our combined valued customers".

Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo said:

"Thistransaction marks a significant milestone in the journey of our 104-year oldBank. Whilst thanking our current investors for their unwavering commitment tothe Bank over the years, we welcome our new core investor, TTB. We recognizethe strategic fit between the two institutions and expect that this deal willdeliver the best outcome for our employees, customers and stakeholders. We lookforward to collectively writing the next exciting chapter for Union Bank".

Chief Executive Officer, Titan Trust Bank, Mr. Mudassir Amray said:

"Aftercompleting over two years of operations with aggressive organic growth, we areexcited to have an opportunity for a significant leap forward in market share.UBN's widespread presence, state-of-the-art technology platform, quality staffand strong brand loyalty fits well with our synchronized modular strategy. Welook forward to delivering superior results for the benefit of our staff,customers, shareholders, and stakeholders".

Rothschild& Cie acted as financial adviser and White & Case LLP and Banwo &Ighodalo acted as legal advisers respectively, to the selling shareholders ofUnion Bank.

CitigroupGlobal Markets Limited acted as financial adviser, Pricewaterhouse Coopers asdue diligence partner, Norton Rose Fulbright LLP, Drew Law Practise and G.Elias & Co. acted as legal advisers respectively to TTB.