It is not often that a newly established company acquires another company that has been in business for decades.
But that is exactly what happened last year when Titan Trust Bank Limited completed the acquisition of Union Bank Plc through a Compulsory Acquisition.
What they achieved: Titan Trust Bank took on the ownership of 1,927,532,558 (one thousand nine hundred twenty-seven million five hundred thirty-two thousand five hundred fifty-eight) ordinary shares of Union Bank Plc.
The shares were valued at 50 (fifty) Kobo each and represent 6.59% of the shareholding of Union Bank of Nigeria Plc.
- Titan Trust Bank Limited was established on December 12, 2018 and received its national banking license in April 2019 to operate as a commercial bank.
- According to the information available on its website, Titan Trust Bank was established to take advantage of the gaps in the banking sector, as well as to serve the demand in retail, SME and corporate institutions.
Because it is important: Union Bank (UBN) is one of the oldest banks in the African giant and also one of the top 30 companies in the Nigerian stock market in terms of market capitalization and liquidity, usually referred to as the NGX 30.
- Union Bank was established in 1917 and listed on the Nigerian Stock Exchange in 1971, with a network of more than 255 sales and service centers across the country and more than 925 ATMs. Union Bank’s core business is focused on the retail, SME, commercial and corporate sectors.
- UBN is among the top NGX companies with a market capitalization of N186.37 billion at the time of writing, with an average annual revenue and net profit of N177 billion and N19 billion respectively (2021 estimate). .
- The deal is worth referencing as one of the major transactions in the Nigerian banking industry and the economy as a whole considering how a four-year-old company could complete its acquisition of one of the country’s oldest and most robust financial institutions.
When I pass: Nairametrics gathered that Titan Trust Bank bought the majority stake in Union Bank in a bid to actualize its stated targets, as highlighted above. The agreement began in December 2021 and ended in October of last year.
Also in 2022, Titan Trust Bank made headlines when it received a sum of $300 million from the African Export-Import Bank (Afreximbank) Intra-African Investment Financing Facility to finance the acquisition of Union Bank.
Who was driving it: Commenting on the deal, Titan Trust Bank Chairman Mr. Tunde Lemo said:
- “The Titan Trust Bank Board 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.
- “Titan Trust Bank’s board of directors 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.”
Along the same lines, Titan Trust Bank CEO Mr. Mudassir Amray commented on the deal saying:
- “After completing more than two years of operations with aggressive organic growth, we are excited to have the opportunity to make a significant leap in market share. UBN’s widespread presence, cutting-edge technology platform, quality staff, and strong brand loyalty fit well with our synchronized modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders..”