Union Bank of Nigeria Plc has said that sale of Union Bank UK Plc was in line with Union Bank’s strategy to streamline its focus on growth opportunities within Nigeria.
Fidelity Bank had in a regulatory filing issued on the Nigerian Exchange Limited said that it had entered into a binding agreement for the acquisition of 100 per cent equity stake in Union Bank United Kingdom Limited, for which the Central Bank of Nigeria has issued a letter of “No Objection”.
The Union Bank in a statement Wednesday recall that in 2020, in its regulatory filing issued to the NGX, the Bank announced that it had entered a Share Sale and Purchase Agreement to divest 100% of its equity stake in Union Bank UK Plc following a competitive bid process.
The bank while giving further explanation on the sale of its UK subsidiary said “We also refer to another regulatory filing issued to the Nigeria Stock Exchange (NGX) in June 2022 announcing the completion of a Share Sale and Purchase Agreement (SSPA) between Union Bank of Nigeria Plc’s majority shareholders – Union Global Partners Limited, Atlas Mara Limited, et al. – and Titan Trust Bank Limited (TTB), which effectively transferred 93.41 per cent of Union Bank’s issued share capital to TTB. This statement reaffirmed that Union Bank UK, a former Union Bank of Nigeria subsidiary, was not included in the sale. The bank, however, said that the proposed sale of Union Bank UK stands alone and is not part of the recent transaction between Union Bank of Nigeria and Titan Trust Bank.
Commenting on the planned divestment, Emeka Emuwa, Chief Executive Officer of Union Bank, said:“As the banking landscape shifts towards digital and agency banking to drive financial inclusion, the Nigerian market presents robust long-term opportunities for Union Bank.
This divestment allows us channel our focus and capital towards mining those opportunities fully. Through the sale, we are better positioned to deliver greater value to the organization and its stakeholders as well as continue to build the future of banking in Nigeria.
The terms of the sale of UBUK delivers substantial value to our shareholders, while also entrusting its customers and trading partners to a high-quality financial services institution who will work with existing management to deliver a stronger and more profitable entity.”
Mohammed Iqbal, Founder and CEO of MBU Capital commented: “We are delighted to announce the acquisition of Union Bank UK, subject to regulatory approval.”