Titan Trust Bank Buys Majority Stake in Union Bank

Titan Trust Bank Limited is set to buy a majority stake in Union Bank of Nigeria Plc, one of the country’s oldest banks.

In a joint statement issued in Lagos on Thursday, the two banks said Titan Trust Bank will buy as much as 89.39 per cent in Union Bank.

Titan Trust and Union announced they had notified the Nigeria Exchange Limited (NGX) and the Securities and Exchange Commission that Union Bank’s core investors, Union Global Partners Limited, Atlas Mara Limited and other shareholders have reached an agreement with Titan Trust Bank Limited (TTB) to divest their shareholding in Union Bank to TTB.

They said the agreement was still subject to regulatory approvals and other financial conditions, and  that it will upon completion transfer 89.39% of Union Bank’s issued share capital to TTB.

The leaders of Union and Titan Trust hailed the transaction, noting it would bring value to both entities.

Union Bank’s chairman, 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 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,” she added.

Also commenting on the transaction, the Chairman of Titan Trust Bank, Mr. Tunde Lemo, 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.”

On his part, the Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo, not that “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.”