It is not often that a newly established company acquires another company that has operated for decades.
But that’s exactly what happened last year when Titan Trust Bank Limited finalised its acquisition of Union Bank Plc through a Mandatory Takeover.
What they achieved: Titan Trust Bank took over ownership of 1,927,532,558 (one billion, nine hundred and twenty-seven million, five hundred and thirty-two thousand, five hundred and fifty-eight) ordinary shares from Union Bank Plc.
The shares were valued at 50 (fifty) Kobo each and represents 6.59% of the shareholding of Union Bank of Nigeria Plc.
Titan Trust Bank Limited was established on 12th December 2018 and received its national banking license in April 2019, to operate as a commercial bank.
According to information available on its website, Titan Trust Bank was established to take advantage of the gaps in the banking sector, as well as to address the demand in retail, SMEs, and corporate institutions.
Why 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 equities market in terms of market capitalization and liquidity, typically referred to as NGX 30.
Union Bank was established in 1917 and was listed on the Nigerian Stock Exchange in 1971, with a network of over 255 sales and service centres across the country and over 925 ATMs. The core of Union Bank’s business is focused on retail, SME, commercial, and corporate.
UBN ranks amongst the top companies in the NGX with a market capitalization of N186.37 billion as of the time of writing this article, printing 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 enterprise could complete the acquisition of one of the oldest and strongest financial institutions in the country.
When it happened: Nairametrics gathered that Titan Trust Bank purchase the controlling stake in Union Bank in a bid to actualise its set goals, as highlighted earlier. The deal commenced in December of 2021 and was finalised in October last year.
Also in 2022, Titan Trust Bank made headlines when it received a sum of $300 million Intra-African Investment Financing Facility from African Export-Import Bank (Afreximbank) to fund its acquisition of Union Bank.
Who was driving it: While commenting on the deal, Titan Trust Bank’s Chairman, Mr Tunde Lemo, said:
“The Board of Titan Trust Bank 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.
“The Board of Titan Trust Bank 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.”
In the same vein, the Chief Executive Officer of Titan Trust Bank Mr Mudassir Amray commented on the deal saying:
“After completing over two years of operations with aggressive organic growth, we are excited to have an opportunity for a significant leap forward in market share. UBN’s widespread presence, state-of-the-art technology platform, quality staff and strong brand loyalty fits well with our synchronized modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”