Tunde Lemo’s financial institution, Titan trust bank takes over union bank

Titan Trust Bank Limited, chaired by former Deputy Governor of Central Bank of Nigeria (CBN), Tunde Lemo is acquiring 89.4 per cent stake in Union Bank of Nigeria (UBN) Plc, while it is on record that the bank three years ago won the Central bank’s permit to run within Nigeria.

Penpushing further reports that, Lemo who is a notable member of the Penpushing platform said the board and key stakeholders are delighted as the transaction marks significant role in strategic growth of the bank

‘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’, he added.

‘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”, Lemo stated

Penpushing further reports that, Titan Trust has been operating in obscurity since inception, with a few branches, recording N2.9 billion in after-tax profit for 2020 compared to Union Bank’s N18.8 billion and an asset value of N136.3 billion, relative to the latter’s N2.2 trillion.

The lender has positioned itself as a challenger with a heart for big things, making its takeover of better-known Union Bank obviously the biggest upset in Nigeria’s M&A scene so far in 2021 and potentially for the whole of the year.

Penpushing also reports that, Titan Trust Bank has an alliance with Citibank, headquartered in New York, which serves it as a correspondent bank, and to reflect the fresh change and for branding purposes, another name for Union Bank will most likely be adopted when the acquisition is perfected.

The Union Bank was launched as Nigeria’s second oldest bank in 1917 when London-based Barclays Bank commenced operations in Lagos, while on latest development, the Union Bank told Nigerian Stock Exchange Limited(NGX) that completion of the transaction is subject to obtaining applicable regulatory approvals and the fulfilment of certain conditions precedent.

Penpushing reports that, the transaction will soften the ground for Titan Trust to hold the largest equity stake by a single investor in any of the country’s publicly quoted banks, and this implies only a limited portion of Union Bank’s shares will be readily available in the open market when the deal is delivered except a corporate resolution to sell down parts of the newly bought interest happens.

The chairperson of Union Bank, Beatrice Bassey, while commenting on the transaction congratulated all parties involved, and also expressed appreciation to investors and their investment over the years

“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’, she said.

‘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’, Bassey added.

‘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”

Penpushing further reports that, Chief Executive Officer of Union Bank, Emeka Okonkwo, on his own part pointed out that the transaction marks a significant milestone in the journey of 104-year old bank

“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’, he stated.

‘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”, Okonkwo said

Penpushing also reports that, Mudassir Amray,  Chief Executive Officer of Titan Trust Bank while speaking said the management was excited to have an opportunity for a significant leap forward in the market share after completing over two years of operations with aggressive organic growth

‘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”

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