Union Bank of Nigeria Plc. today
announced that it has entered a share sale and purchase agreement to divest of
its 100% equity stake in Union Bank UK Plc. (“UBUK”). This sale is aligned with
Union Bank’s strategy to geographically streamline its business operations to
focus on growth opportunities in Nigeria.
Following a competitive bid process, MBU
BidCo Limited (“MBU”), an acquisition vehicle wholly owned by MBU Capital
Limited (“MBU Capital”), was selected as the preferred bidder. The completion
of the sale is subject to regulatory approvals from the relevant regulatory
authorities in Nigeria and the United Kingdom.
Commenting on the planned divestment,
Emeka Emuwa, Chief Executive Officer of Union Bank, said:
“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 organization 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.”
Mohammed Iqbal, Founder and CEO of MBU
Capital commented:
“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.”
Chapel Hill Denham Advisory Limited acted as Financial Advisers while White
& Case LLP and Udo Udoma & Belo-Osagie acted 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.