Titan Trust Bank Limited (TTB), one of the fastest-growing and customer-centric financial service providers in Nigeria, has acquired Union Bank of Nigeria Plc.
This followed an agreement by Union Global Partners Limited, Atlas Mara Limited and other majority shareholders to divest 88.39 per cent shareholding in Union Bank to Titan Trust Bank.
The board of Union Bank of Nigeria Plc in a notification to the Nigerian Exchange Limited (NGX) and the Securities Exchange Commission on Thursday, explained that the agreement, which is subject to regulatory approvals and other financial conditions, would upon completion transfer 89.39 percent of Union Bank’s issued share capital to Titan Trust 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. Today, the bank is well-positioned with an innovative product offering, a growing customer base of over six million and consistent year on year profitability.
According to the chairman, Titan Trust Bank, Mr. Tunde Lemo, OFR: “The Board of Titan Trust Bank and our key stakeholders are delighted as this transaction marks a key step for Titan Trust in its 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.
Chief Executive Officer, Union Bank, Mr. Emeka Okonkwo noted: “This transaction marks a significant milestone in the journey of our 104-year old Bank. Whilst thanking our current investors for their unwavering commitment to the Bank over the years, we welcome our new core investor, TTB. We recognize the strategic fit 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.
According to the statement, Rothschild & Cie acted as financial adviser and White & Case LLP and Banwo & Ighodalo acted as legal advisers respectively, to the selling shareholders of Union Bank, while Citigroup Global Markets Limited also acted as financial adviser, Pricewaterhouse Coopers as due diligence partner, Norton Rose Fulbright LLP, Drew Law Practise and G. Elias & Co. acted as legal advisers respectively to TTB.
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank has a network of over 280 Sales and Service Centers across Nigeria. Union Bank is focused on Retail, Commercial and Corporate Banking businesses.
Titan Trust Bank is one of the newest national commercial banks in Nigeria.
The lender commenced operation in October 2019 with a strong capital base and has demonstrated precision in execution of its strategy by showing tremendous growth, even in difficult times.
In just two years of existence, the bank has grown to earn the confidence of the banking public, offering quality banking services at a cutting-edge technology that enables its customers to enjoy banking services through a wide range of channels.
Titan Trust Bank has received industry-wide recognition, having been named ‘Best Trade Finance Provider in Nigeria’ for 2022 (for the second year running) by the New York-based Global Finance Magazine World’s Best Trade Finance Providers Awards and ‘Best New Commercial Banking Brand’ and ‘Fastest Growing Digital Banking Brand’ for 2021.
The people and shareholders behind Titan Bank
Union Bank Plc announced during the week that its core shareholders had reached a deal that will see their shares acquired by 2 years old Titan Bank.
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 totaling 89.39% in Union Bank to Titan Trust Bank. The bank did not comment on the purchase consideration.
As expected, the announcement aroused excitement among investors and the general public considering how significant a bank like Union Bank is to the Nigerian economy historically and financially. Whilst, Union Bank is a household name in Nigeria, a lot of Nigerians may not be fully aware of who owns Titan Bank as well as who the people that run it are. Here is what we know so far
Titan Bank
Titan Trust Bank was approved as a national commercial bank in Nigeria in 2019 and commenced operation in October of the same year. The bank currently has two bank branches and styles itself as a digital bank, a common focus for newer banks looking to challenge the more established commercial banks. The company is not a quoted company and as such does not publish its financial statements publicly. However, we did get a copy.
Results
- In its financial statement, Titan Bank reported gross earnings of N8.5 billion in 2020 up from N2.5 billion reported a year earlier when it just commenced operations. It commenced operations in October 2019.
- Profit after tax was N2.9 billion delivering a return on average equity of about 8%.
- The company has customer deposits of about N85.9 billion and loans and advances of about N38.7 billion.
- It’s Net Assets as of 2020 is N32.9 billion.
- Most of the company revenues come from fees generated from Letters or credits and from trading forex.
Directors
Titan Bank has 7 directors namely Mr. Tunde Lemo (Chairman), Mr, Mudassir Amray (MD/CEO). Mr. Andy Ojei (Non-Executive Director), Alhaji Abubakar Mohammed (Independent non0Executitive Director), Mr. Mackombo Chukwudi Lawrence Omoile (Independent non-Executive Director), and Dr. Adaeze Udensi (Executive Director).
Its Management team comprises Mr. Amray, Dr. Udensi, Mr. Ademola Ajayi (Head of Compliance). Stella Nwihim (Head of Human Resources), Mr. Mark Oguh (Chief Financial Officer). Chineyeoke Uga (Chief Risk Officer) and Uche Ugboh (Treasurer). Dr. Adaeze for those who remember is a veteran of Zenith Bank Plc and also an executive director at Heritage Bank.
Mr. Amray was once the Managing Director / Group Head of Global Corporate & Investment Banking & Senior Credit Officer for Citibank Nigeria and Ghana. Mr. Oguh was also the former CFO of Diamond Bank between 2015 and March 2019.
Shareholders
A search of Titan Bank’s shareholding structure reveal the following information.
- Aminu Yao 5,299,700 (9.07%)
- Luxis Int’l DMCC 28,090,400 (48.09%)
- Magna Int’l DMCC 21,840,000 (37.39%)
They are all related parties to TGI.
Titan Trust Bank is owned majorly by Tropical General Investment Group (TGI).
TGI operates in Nigeria and West Africa as an investment firm with ownership in diverse businesses ranging from FMCG, commodities, agriculture, agric processing, pharmaceuticals and oil field services, real estate, and trading.
One of TGI’s most notable companies was CHI Limited makers of the popular Chivita products. TGI eventually sold the company to Coca-Cola in 2019. TGI also owns WACOT Rice Mill located in Kebbi State which is said to be the largest parboiled rice mill in Africa.
The purchase consideration was not disclosed, however, we understand it is in the region of $1 billion. Nairametrics also gathers TGI owns up to 85% of Titan Trust Bank while the balance is owned by other shareholders of Nigerian origin.
TGI’s Chairman and Founder is Mr. Cornelius G. Vink (MFR) and has operated in Nigeria since the early eighties. In fact, older Nigerians will remember Caprisomme one of the most popular beverages in the country as his first major hit product. Vink Corporation DMCC is the trading arm of the Group.
Mr. Vink is a silent billionaire and our sources indicate his organisation already has the financial muscle to pay for Union Bank’s majority ownership.
TGI Group also has the following people as its executive directors; Rahul Savara as Group Managing Director, Jerome Shogbon (Group Executive Director), Farouk Gumel (Group Executive Director), Remi Oni (Group Executive Director), Martin Middernacht (Group Executive Director). Mr. Gumel is also on the board of NSIA.
