Union Bank of Nigeria Plc has notified The Nigerian Stock Exchange that the Bank has appointed financial advisers for the purpose of obtaining guidance and direction on the best option for complying with the directive of the Central Bank of Nigeria (CBN) regulation for all banks to divest from their non-banking subsidiaries and focus on their core areas of expertise.
The Board of Union Bank of Nigeria Plc has resolved that the Bank should divest its shares in its subsidiaries, with the exception of Union Pension Custodian Limited, which the Board resolved should be wound up and Union Bank UK Plc, which will be retained as the only subsidiary of the Bank.
The Bank has already held discussions with the Central Bank of Nigeria and interested investors had carried out in-depth due diligence exercises and rigorous bidding processes had been conducted with a view to selecting the preferred investor for each subsidiary.
Preliminary steps are being taken to wound up Union Pension Custodian Limited while preferred bidders have been selected for Union Homes Savings and Loans Plc, Union Assurance Company Limited and Union Capital Markets Limited and share purchase agreements have been executed with a view to making formal applications in respect of the transactions to all regulatory bodies.
Union Bank of Nigeria Plc will undertake the same processes for divestment from Union Registrars Limited, UBN Property Limited and the rest of the subsidiaries in due course.