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Titan Trust Bank acquires majority stake of union bank

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Titan Trust Bank acquires majority stake of union bank - Naija News 247
Titan Trust Bank acquires majority stake of union bank

Titan Trust Bank Limited to buy 89.39 per cent in Union Bank of Nigeria Plc, both banks announced on Thursday.

Titan Trust Bank acquires majority stake of union bank - Naija News 247
Titan Trust Bank acquires majority stake of union bank

In a joint statement released in Lagos, Titan and Union said they had informed 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.

“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,” the banks said in the statement.

The deal suggests a merely 2 years old bank (Titan, which commenced operations in October 2019) will be acquiring a 104-year-old bank.

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The deal, when consummated will be one of the most remarkable acquisitions in the Nigerian Banking space after STB acquired UBA in the landmark 2005 deal.

The announcement of the deal also confirms rumours that have made the rounds across the financial sector of a potential sale of Union Bank to a local bank.

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There have been several reports of a potential acquisition of the bank by Zenith, Access and even Moroccan bank, Attijariwafa.

Commenting on the transaction, 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.

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On his part, 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 propel the institution to the next level in the Nigerian banking sector.”

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Olajire Taofeek
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