Dipo Olowookere
By Dipo Olowookere
One of the shocking deals in the Nigerian banking industry was the recent acquisition of Union Bank of Nigeria Plc by Titan Trust Bank Limited.
This was because many observers did not envisage this to happen as the buyer was relatively new in the game, especially when heavyweights like Access Bank Plc and Zenith Bank Plc had been previously linked with the transaction, though both denied it.
Questions were raised as to how was it possible for a ‘two-year-old child’ to take control of a 105-year-old great-grandfather?
Well, African Export-Import Bank (Afreximbank) may have played a key role in the deal as it facilitated the funding for the acquisition by giving the young lender a credit facility of $300 million.
Another question that may come up might be ‘how did Titan Trust convince Afreximbank to release that amount to it?’ The answer to this is the vehicle used for the transaction, PAC Capital Limited, the investment banking arm of PanAfrican Capital Holdings.
PAC Capital supported Titan Trust to secure the funding package from Afreximbank as confirmed by the Managing Director of PAC Capital, Mr Humphrey Oriakhi.
Mr Oriakhi stated that the $300 million was used to complete “the funds required for the proposed acquisition.”
It is expected that the Union Bank deal will enhance the competitive dynamics of the Nigerian banking sector while maintaining confidence in Nigeria’s financial services industry and broader financial stability.
The development impact of the acquisition as stated by Afreximbank is immense as Titan Trust plans to leverage the merged entity to provide financing of about $3 billion over the medium term of which over $600 million will directly support intra-regional trade finance.
PAC Capital boasts an excellent track record of successful fundraising and financial advisory services across aviation, financial services, telecommunications, power & energy, oil & gas, agro-allied and hospitality industries in Nigeria and across and beyond Africa.
