In a move that has reverberated in the financial services sector, Union Bank Nigeria Plc announced that it has agreed with Titan Trust Bank Ltd to sell a majority stake of 89.39%. This remarkable transaction is according to a press release published on the Nigerian Stock Exchange on Thursday.
Union Global Partners Ltd, the holder of a majority shareholding in Union Bank, and certain other existing shareholders of Union Bank would divest their combined shareholding of an aggregate of 89.39% of the issued share capital of Union Bank to Titan Trust Bank Limited. However, completion of the transaction is subject to obtaining applicable regulatory approvals and the fulfilment of certain conditions precedent.
Although the consideration for this transaction is yet to be disclosed, this deal heralds a significant era in the Nigerian banking space given the disparity in years of operations between both parties. Titan Trust commenced operations in October 2019 and is barely 2 years old with two bank branches in Lagos, while Union Bank is a 104-year-old household name bank and one of Nigeria’s long-standing and most respected financial institutions with a network of over 280 Sales and Service Centers across Nigeria.
Hear from Union and Titan Trust Bank
Chair, 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.”
Chair, 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 long-standing and leading banking franchise with TTB’s innovation-led model, which promises to enhance the product and service offering for our combined valued customers.”
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.”
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.”
Titan Trust Bank is the newest national commercial bank in Nigeria and has received industry-wide recognition, having been named ‘Best Trade Finance Provider in Nigeria’ for 2022 by Global Finance (for the second year running) and ‘Best New Commercial Banking Brand’ and ‘Fastest Growing Digital Banking Brand’ for 2021 by the Global Brand.
Union Bank is currently a Tier 2 bank and has the branch network, technology, and brand recognition that can quickly fast-track Titan Bank into the mainstream of Nigerian Bank. The significant deal will provide Titan Trust Bank with a unique opportunity to grow its market share and compete with the FUGAZ.