Union Financial institution of Nigeria Plc has stated that sale of Union Financial institution UK Plc was in step with Union Financial institution’s technique to streamline its give attention to development alternatives inside Nigeria.
Constancy Financial institution had in a regulatory submitting issued on the Nigerian Alternate Restricted stated that it had entered right into a binding settlement for the acquisition of 100 per cent fairness stake in Union Financial institution United Kingdom Restricted, for which the Central Financial institution of Nigeria has issued a letter of “No Objection”.
The Union Financial institution in a press release Wednesday recall that in 2020, in its regulatory submitting issued to the NGX, the Financial institution introduced that it had entered a Share Sale and Buy Settlement to divest 100% of its fairness stake in Union Financial institution UK Plc following a aggressive bid course of.
The financial institution whereas giving additional clarification on the sale of its UK subsidiary stated “We additionally refer to a different regulatory submitting issued to the Nigeria Inventory Alternate (NGX) in June 2022 asserting the completion of a Share Sale and Buy Settlement (SSPA) between Union Financial institution of Nigeria Plc’s majority shareholders – Union International Companions Restricted, Atlas Mara Restricted, et al. – and Titan Belief Financial institution Restricted (TTB), which successfully transferred 93.41 per cent of Union Financial institution’s issued share capital to TTB. This assertion reaffirmed that Union Financial institution UK, a former Union Financial institution of Nigeria subsidiary, was not included within the sale. The financial institution, nevertheless, stated that the proposed sale of Union Financial institution UK stands alone and isn’t a part of the latest transaction between Union Financial institution of Nigeria and Titan Belief Financial institution.
Commenting on the deliberate divestment, Emeka Emuwa, Chief Govt Officer of Union Financial institution, stated:“Because the banking panorama shifts in direction of digital and company banking to drive monetary inclusion, the Nigerian market presents sturdy long-term alternatives for Union Financial institution.
This divestment permits us channel our focus and capital in direction of mining these alternatives absolutely. By the sale, we’re higher positioned to ship better worth to the group and its stakeholders in addition to proceed to construct the way forward for banking in Nigeria.
The phrases of the sale of UBUK delivers substantial worth to our shareholders, whereas additionally entrusting its clients and buying and selling companions to a high-quality monetary providers establishment who will work with current administration to ship a stronger and extra worthwhile entity.”
Mohammed Iqbal, Founder and CEO of MBU Capital commented: “We’re delighted to announce the acquisition of Union Financial institution UK, topic to regulatory approval.”