The Board of Directors of Union Bank Plc has announced the retirement of its Chief Executive Officer, Emeka Okonkwo effective 2nd of June 2022 and other top directors of the bank.
This is coming on the heels of the completion of core investors’ sale of majority shareholding to Titan Trust Bank Limited, a subsidiary of TGI Group which now holds 93.4 percent of Union Bank’s issued share.
According to a statement signed by bank’s Somuyiwa Sonubi, Company Secretary the bank, other directors that retired include Mrs. Beatrice Hamza Bassey, Chair/Non-Executive Director; Mrs. Obafunke Alade-Adeyefa, Independent Non-Executive Director; Mr. Richard Burrett, Non-Executive Director; Mr. Ian Clyne, Non-Executive Director; Mr. Kenroy Dowers, Non-Executive Director; Mr. Paul Kokoricha, Non-Executive Director; Mr. Taimoor Labib, Non-Executive Director; Mr. Mark Patterson, Non-Executive Director; and Mr. Emeka Ogbechie Non-Executive Director.
The Board of Directors of Union Bank also announced the appointment of Mr. Mudassir Amray as the Chief Executive Officer, effective 2nd June 2022 and Mr. Farouk Mohammed Gumel as the Bank’s Chairman.
Recall that in 2021, Union Bank Nigeria Plc had reached an agreement to sell a majority stake to Titan Trust Bank Ltd.
According to details obtained, the deal will see existing core investors in Union Bank, Union Global Partners Ltd (64.98%), Atlas Mara (25.53%) and other shareholders divest their core holdings totalling 89.39 per cent in Union Bank to Titan Trust Bank.
The deal suggests a merely 2 years old bank (Titan commenced operations in October 2019) will be acquiring a 104-year-old bank, becoming one of the most remarkable acquisitions in the Nigerian Banking space after STB acquired UBA in the landmark 2005 deal.
Commenting on behalf of the outgoing Directors, erstwhile Chair of the Board, Mrs. Beatrice Hamza Bassey said the Union Bank reached a significant milestone with the completion, after regulatory approvals, of the epoch-making transaction announced in December 2021 between the Bank’s core shareholders and Titan Trust Bank.
The Company Secretary of Union Bank, Somuyiwa Sonubi, disclosed this in a statement on Thursday.
According to him, the Board of Directors of Union Bank has received a notification from Union Global Partners Ltd. (UGPL) – the holder of a majority shareholding in the bank – of the execution of a share sale and purchase agreement between UGPL, some of its other existing shareholders, and Titan Trust Bank Limited (the purchaser) for the sale of an aggregate 89.39% of the issued share capital of Union Bank held by the sellers to the purchaser.
The completion of the transaction is, however, subject to obtaining applicable regulatory approvals and the fulfillment of certain conditions precedent.
“On behalf of the Board, we congratulate all the parties involved in reaching this phase of the transaction and the board looks forward to supporting the next steps to ensure a seamless completion of the process following regulatory approvals,” said Mrs. Beatrice Bassey who is Chair of Union Bank.
We are grateful to our current investors whose significant and consequential investments over the past nine years facilitated the transformation of Union Bank, one of Nigeria’s oldest and storied institutions.”
Bassey believes the bank is well-positioned with an innovative product offering, a growing customer base of over six million, and consistent year on year profitability.
She described such attributes as a solid foundation for incoming investors to build on as the bank advances into a new era.
For the Chairman of Titan Trust Bank, Mr. Tunde Lemo, the bank and its key stakeholders are delighted as the transaction marks a major step in the bank’s strategic growth journey and propels the institution to the next level in the Nigerian banking sector.
“The deal represents a unique opportunity to combine Union Bank’s longstanding and leading banking franchise with TTB’s innovation-led model which promises to enhance the product and service offering for our combined valued customers,” he said.
On his part, the Chief Executive Officer (CEO) of Union Bank, Emeka Okonkwo, described the development as a significant milestone in the journey of the 104-year-old bank.
He thanked the bank’s current investors for their unwavering commitment over the years and welcomed their new core investor.
“We recognise the strategic feat between the two institutions and expect that this deal will deliver the best outcome for our employees, customers and stakeholders. We look forward to collectively writing the next exciting chapter for Union Bank.”
“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,” said Mr Mudassir Amray who is CEO of Titan Trust Bank.
“UBN’s widespread presence, state-of-the-art technology platform, quality staff, and strong brand loyalty fits well with our synchronised modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank is one of Nigeria’s long-standing financial institutions.
While it has a network of over 280 sales and service centres across the country, Titan Trust Bank began operation in October 2019.
