Union Bank of Nigeria Plc has announced that it has entered a share sale and purchase agreement to divest its 100 per cent equity stake in Union Bank UK Plc.
In a notification to the Nigerian Stock Exchange (NSE), Union Bank said the sale aligned with its strategy to geographically streamline its business operations to focus on growth opportunities in Nigeria.
According to the bank, following a competitive bid process, MBU Bid Co Limited, an acquisition vehicle wholly owned by MBU Capital Limited, was selected as the preferred bidder. The completion of the sale is subject to regulatory approvals from the relevant regulatory authorities in Nigeria and the United Kingdom. Commenting on the planned divestment,
Chief Executive Officer of Union Bank, Emeka Emuwa, 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 organisation 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.”
Also commenting, Founder and CEO of MBU Capital, Mohammed Iqbal, said: “We are delighted to announce the acquisition of Union Bank UK, subject to regulatory approval. We see a huge opportunity to build on UBUK’s strengths in international markets to create a new-style bank which is focused on the needs of UK and international SMEs and entrepreneurs.
Many of these customers are seeking a bank which truly understands the needs of entrepreneurial, fast-growing businesses. We believe that our acquisition and vision for UBUK offers the potential for significant growth for the bank. We look forward to working with our new colleagues at UBUK to continue to service the needs of its clients. We also look forward to sustaining and deepening relationships with UBUK’s existing trading partners.”
Meanwhile, the stock market sustained its bearish performance as the NSE All-Share Index fell by 0.59 per cent to close at 29,378.63, while market capitalisation shed N89.8 billion to be at N15.1 trillion.