Titan Bank Allays Fears, Says Union Bank Acquisition Followed Due Process

By Aduragbemi Omiyale

The management of Titan Trust Bank Limited has asked customers of Union Bank of Nigeria and other stakeholders to remain calm and not fret over reports that the federal government has been advised to take over the bank.

It was reported that a recommendation was made to the government to nationalise Union Bank because its acquisition did not follow due process.

In June 2023, President Bola Tinubu suspended Mr Godwin Emefiele as the Governor of the Central Bank of Nigeria (CBN) and later appointed Mr Jim Obazee to look into the activities of the apex bank.

A few days ago, he submitted his report to Mr Tinubu and a part of it was leaked to the media, with the former CBN chief accused of acquiring Union Bank, Keystone Bank and Heritage Bank through proxies.

However, Titan Trust Bank, which acquired Union Bank, has said the transaction underwent due process, with reputable organisations contracted during the process.

In a statement obtained by Business Post, the lender said on December 18, 2021, it “signed a Share Sale and Purchase Agreement (SPA) with Atlas Mara Limited, Union Global Partners Limited, Emeka Emuwa, Standard Chartered Bank, Montane Partners West Africa Limited, TLG Africa Growth Impact Fund, and Sanlam Life Assurance Limited” for the purchase of 93.41 per cent of Union Bank’s issued ordinary share capital.”

“The acquisition was funded by a combination of debt ($300 million) and an additional equity injection of about $190 million, which was contributed by TTB’s two major shareholders – Magna International DMCC and Luxis International DMCC,” it added.

The statement further said “all necessary regulatory approvals from its primary regulator – the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Nigerian Exchange Limited (NGX), and the Federal Inland Revenue Service (FIRS), among others,” were obtained, and took over the “controlling interest in Union Bank on June 1, 2022.”

Commenting on the allegations relating to the ownership of Titan Trust Bank, the statement said it cooperated with the investigating team by details of its “share ownership structure,” including the holdings of Magna International DMCC and Luxis International DMCC owned by Mr Rahul Savara and Mr. Cornelius Vink.

“Therefore, we urge our customers, shareholders, and stakeholders to remain calm as we do everything legal to ensure that the current misunderstanding is clarified,” the statement said.