Union Bank of Nigeria Plc has entered a share sale and purchase agreement to divest of its 100 per cent equity stake in Union Bank UK Plc.
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, an acquisition vehicle wholly owned by MBU Capital Limited, 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 the divestment allows the bank channel its 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,” he said.
In his comments, Mohammed Iqbal, Founder and CEO of MBU Capital said his company 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.