2-Year-Old Titan Trust Bank Takes Over 104-Year-Old Union Bank

December 24, 2021
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One of the fastest-growing financial service providers in Nigeria, Titan Trust Bank Limited (TTB) has acquired majority stake in Union Bank of Nigeria Plc, which had been in existence for 104 years.

2-Year-Old Titan Trust Bank Takes Over 104-Year-Old Union Bank

It was gathered the new development is based on an agreement by Union Global Partners Limited, Atlas Mara Limited, and other majority shareholders to divest 88.39 percent shareholding in Union Bank to Titan Trust Bank.

2-year-old Titan Trust Bank, which commenced operations in October 2019, is chaired by former Deputy Governor of the Central Bank of Nigeria (CBN) and Chairman of Flutterwave, Tunde Lemo. 

According to Vanguard, the board of Union Bank of Nigeria Plc in a notification to the Nigerian Exchange Limited (NGX) and the Securities Exchange Commission on Thursday, explained that the agreement, which is subject to regulatory approvals and other financial conditions, would upon completion transfer 89.39 percent of Union Bank’s issued share capital to Titan Trust Bank.

The Chairman, Union Bank, Mrs. Beatrice Hamza Bassey, while speaking on the development 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.”

However, the TTB chairman, Tunde Lemo, stated that “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.

According to the report, Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo said “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,” he noted.

Chief Executive Officer, 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.”

According to the statement, Rothschild & Cie acted as financial adviser and White & Case LLP and Banwo & Ighodalo acted as legal advisers respectively, to the selling shareholders of Union Bank, while Citigroup Global Markets Limited also acted as financial adviser, Pricewaterhouse Coopers as due diligence partner, Norton Rose Fulbright LLP, Drew Law Practise and G. Elias & Co. acted as legal advisers respectively to TTB.

KanyiDaily had reported how Lagos State High Court in Igbosere convicted and jailed two hackers, who defrauded Union Bank to the tune of N2.55 billion.

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