The proposed sell-off is a share sale and purchase agreement, where Union Bank of Nigeria Plc will divest its 100% equity stake in Union Bank UK Plc.
In a corporate filing on Tuesday, January 28th, 2020, the bank said the sale aligned with its strategy to “geographically streamline its business operations to focus on growth opportunities in Nigeria”.
According to the bank, MBU BidCo Limited, wholly owned by MBU Capital Limited, has emerged as the preferred bidder.
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 to 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, said the acquisition of Union Bank UK is a huge opportunity to build on bank's strengths in international markets and to create a new-style bank that is focused on the needs of UK and international SMEs and entrepreneurs.
The acquisition is still subject to regulatory approvals from the relevant regulatory authorities in Nigeria and the United Kingdom.
The stock of Union Bank Nigeria (UBN) is currently trading at N6 per share on the Nigerian Stock Exchange.