Titan Trust Bank has formalised the acquisition of 89 per cent of Union Bank of Nigeria (UBN) Plc in an off-market deal said to be worth N191 billion.
The deal bloated the entire stock market trade metrics, as the volume traded stood at 27.565 billion units, while traded value settled at N194.356 billion.
It will be recalled that in December 2021, the board of UBN announced that its investors, Union Global Partners Limited, Atlas Mara Limited and other shareholders, have reached an agreement with Titan Trust Bank Limited to divest their shareholding in Union Bank to TTB.
Reports indicate “the acquisition stands as the biggest in recent years, dwarfing the N120 billion Crown Mills paid to acquire Dangote Flour Mills and the N91 billion NIPCO paid for a majority share in Mobil Nigeria. Also, this is the biggest deal in the banking space since the N72 billion merger between Access Bank and Diamond Bank Plc.”
Titan Trust Bank, the newest national commercial bank in Nigeria, commenced operation in October 2019 while Union Bank is over a century old.
Speaking on the deal, Mr. Tunde Lemo, Chairman, Titan Trust Bank, noted that the transaction marked a key step for Titan Trust in its strategic growth journey and propelled the institution to the next level in Nigerian banking sector.
He added that 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.
The chief executive officer, Union Bank, Mr Emeka Okonkwo, said: “This transaction marks a significant milestone in the journey of our 104-year-old bank. While thanking our current investors for their unwavering commitment to the bank over the years, we welcome our new core investor, TTB.”
The agreement is subject to regulatory approvals and other financial conditions.
