MBU Capital Acquires UK Subsidiary of Union Bank
By Dipo Olowookere
An investment company based in the England, MBU BidCo Limited, an acquisition vehicle wholly owned by MBU Capital Limited and co-founder by an experienced investment manager, Mr Mohammed Iqbal, has been selected to become the new owner of the United Kingdom subsidiary of Union Bank of Nigeria Plc.
The Nigerian lender, in a notice to the Nigerian Stock Exchange (NSE) on Tuesday, announced that MBU Capital will now control 100 percent stake in the bank subject to approval of the relevant regulatory agencies from the two countries.
Union Bank explained that it was selling the financial institution as part of its “strategy to geographically streamline its business operations to focus on growth opportunities in Nigeria.”
“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,” The CEO of Union Bank, Mr Emeka Emuwa, commented.
On his part, Mr Iqbal, stated that, “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.”
It was stated that MBU Capital was picked to acquire the bank from a competitive bidding, while Chapel Hill Denham Advisory Limited acted as Financial Advisers with White & Case LLP and Udo Udoma & Belo-Osagie acting as UK Legal Advisers and Nigeria Legal Advisers respectively to Union Bank.
Syndeo Capital Limited (led by Mandeep Ahluwalia) acted as Advisers to MBU Capital with Akin Gump LLP as Legal Advisers and PwC as Financial and Tax Advisers.