Some minority shareholders of Union Bank Plc have expressed worry over the acquisition of the over 100 years old bank by Titan Trust Bank Limited whose footprint in Nigeria is not more than two years old.
Union Bank Plc, two days ago announced the completion of core investors’ sale of majority shareholding to Titan Trust Bank Limited, a subsidiary of TGI Group.
The acquisition has however resulted in the resignation and subsequent retirement of the directors from the Board of Union Bank and the appointment of new directors.
What they are saying
Reacting to this development, the founder of the Independent Shareholders Association, ISAN, Sir Sunny Nwosu while speaking with Nairametrics, expressed doubt about the true acquirers of the bank.
“Titan Bank is not even more than two years in Nigeria, they may not have the leverage to acquire a bank as big as Union Bank, I think there are forces behind the acquisition. I believe with time the real truth will unfold,” Nwosu.
Commenting as well, Chairman, Issuers and Investors Alternative Dispute Resolution (IIADRI), Mr Moses Igbrude, said, “Acquisition or buying of shares of companies is the major objective of having a capital market.
“There must be a willing seller and a willing buyer with the resources to do the transaction involved.
“So Titan Trust Bank acquiring Union Bank is not surprising to me because the core investor there has since indicated their interest to divest from the bank.
“My concern is that the bank should be well run and managed for the benefit of all stakeholders.”
Boniface Okezie, the national coordinator of the Progressive Shareholders Association said the acquisition is in order, and a welcome development.
He noted that his concern was that the new management should have the capacity to run the bank as a profitable organisation so that it can compete with its peers in the industry.
“They should reposition the bank to bring good returns on investment. They should be able to turn in a good dividend. Union Bank at 105 years must be able to lead others. We want seamless transactions powered by technology. Shareholders will be happy as far as they should grant minority shareholders a good return on investment,” Okezie said.
A shareholder and a former President of the Noble Shareholders Association, Chief Timothy Adesiyan, said, “None of all these old generation banks is worthy of writing home about. They have wasted our money and we are not growing younger with our investment in some of these banks.
“My concern is that any investor who thinks about them and how our money was wasted will not have rest of mind. The new generation banks are doing far better than them.”
In case you missed it
- Nairametrics recently reported of strong indications that a mass resignation is brewing at the bank as most of its staff are already considering resigning for fear of an impending sack following the acquisition of the bank by Titan Trust Bank.
Hello union bank plc of 105years old,its
dis heartening to hear of your 105yrs efforts is being given off to a new generationTTB LIMITED I recently heard about them.Iwish them all the best.As a client with union bank plc since1978 ,
January am I still safe to continue banking with you? or should I close my record and stop my investments,Am also a share holder in union bank plc.we need your reassuring words quickly to encourage
us for continuity of services at union bank
I cover union bank plc with the precious blood of Jesus christ.God the father pls take control in Jesus great name amen
The new core investor TGI Group has been in business in Nigeria since 1980. TGI group are the founders of Chi and other successful companies and have shown resilience in the Nigerian business environment, unlike the former core investor (Atlas Mara) that did not really understand the Nigerian and African environment hence and are now exiting the space.
We will have to observe how Union Bank performs in the coming years. I believe that the new investors understands the Nigerian market and will be aggressive in taking Union Bank to new highs.