Union Bank of Nigeria Plc. (“Union Bank”) today announced that it has entered into a share sale and purchase agreement to divest of its 100% equity stake in Union Bank UK Plc. (“UBUK”) to MBU BidCo Limited (“MBU”), an acquisition vehicle wholly owned by MBU Capital Limited. This sale allows Union Bank to deliver on its strategy to geographically streamline its business operations to focus on growth opportunities in Nigeria. The completion of the sale is subject to regulatory approvals.
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.”
Kemi Awodein, Managing Director at Chapel Hill Denham Advisory Ltd added:
“Chapel Hill Denham is very honored to have supported Union Bank on this important transaction. Union Bank is a long standing client of ours and we are delighted that, acting as sole Financial Advisers, we have been able to deliver a solid outcome. The Nigerian Banking landscape is constantly evolving, with immense opportunities that should be exploited as Union Bank is now positioned to; as part of its strategic decision to focus on and strengthen its domestic base here in Nigeria. This divestment is value accretive to Union Bank. We are also confident that UBUK, under its new ownership, will continue to deliver growth and value for all its stakeholders.”
Chapel Hill Denham Advisory Limited acted as exclusive Financial Advisers to Union Bank on this cross-border trade sale while White & Case LLP and Udo Udoma & Belo-Osagie acted as UK Legal Advisers and Nigeria Legal Advisers respectively.”
Syndeo Capital Limited acted as Advisers to MBU Capital with Akin Gump LLP as Legal Advisers and PwC as Financial and Tax Advisers.
About Chapel Hill Denham
Chapel Hill Denham is a leading independent investment banking, securities trading and investment management firm. The firm is Nigeria’s most trusted advisor, focused on providing unbiased advisory, execution and investment services to corporations, governments, institutions and individuals involved in investing in and developing Nigeria and Africa.