Union Bank’s galloping horse finally gets into stable at Titan Trust

BY ONOME AMUGE

It’s all done now. Titan Trust Bank Limited (TTB) formalised its majority stake acquisition of 89.39 percent of the bank with a galloping horse, Union Bank of Nigeria (UBN) Plc, taking it into its stable, thus officially becoming the controlling investor and majority shareholder in Nigeria’s second oldest bank.

The off-market deal, a culmination of 19 cross deals between TTB, Union Global Partners Limited, Atlas Mara Limited and other shareholders done through the negotiated window of the Nigerian Exchange (NGX) at N7 per share, stood at a transaction value of N191.4 billion, making it one of the biggest deals in the banking space, according to capital market analysts.

Following the completion of the transaction, Union Bank notified NGX, stakeholders and the investing public of the divestment of its entire shareholding interest (direct and indirect) in its subsidiary, Union Bank UK Plc (UBUK), to all the shareholders in the bank’s records as of March 4 2022, proportional to their existing shareholding interests. Union Bank,however, stated that UBUK is not included in the transaction with Titan Trust Bank.

The bank also notified the NGX of the resignation and subsequent retirement of its board of directors including; Beatrice Hamza Bassey, who served as chair/non-executive director; Emeka Okonkwo, chief executive officer; Obafunke Alade-Adeyefa, independent non-executive director; as well as Richard Burrett, Ian Clyne,Kenroy Dowers,Paul Kokoricha, Taimoor Labib,Mark Patterson and Emeka Ogbechie, who served as non-executive directors of the board.

In their stead, Mudassir Amray was appointed chief executive officer; while Farouk Mohammed Gumel, Andrew Ojei;Abubakar Mohammed; and Lawrence Mackombo were appointed non-executive directors of the new board.

Speaking on behalf of the outgoing directors,Beatrice Hamza Bassey, erstwhile Chair of the board, described the completion of the deal as a significant milestone,noting that it met regulatory approvals of the epoch-making transaction announced in December 2021 between the bank’s core shareholders and Titan Trust Bank.

“It has been a privilege and honour to have chaired and served on the Board that oversaw the preservation and transformation of one of Nigeria’s most iconic institutions.

The significant investments made over the last ten years by the outgoing investors, along with the vision, astute counsel and direction of our directors helped us implement the strategic objectives that we set and laid the foundation for this new era of growth for the bank,” she stated.

Highlighting the achievements of the outgoing directors, Bassey said they reshaped the bank with significant investments in the technological infrastructure; hired a capable management team; attracted a talented and diverse work-force;established a first-rate governance structure; introduced innovative products and channels to better serve the bank’s customers, attracted significant funding, especially with DFI partners, and launched the innovative Alpher Women’s Initiative which is expected to further accelerate financial inclusion.

“We wish Titan Trust Bank, the incoming board of directors and Amray every success for the future and look forward to seeing the bank continue from strength to strength in servicing the financing needs of our customers,” Bassey added.