Union Bank of Nigeria Plc. (“Union Bank”), has entered a share sale and purchase agreement to divest of its 100% equity stake in Union Bank UK Plc. “UBUK”.
In a statement, the bank noted that the sale is in line with Union Bank’s strategy to geographically streamline its business operations to focus on growth opportunities in Nigeria.
According to the statement, MBU BidCo Limited (“MBU”), an acquisition vehicle wholly owned by MBU Capital Limited (“MBU Capital”), was selected as the preferred bidder following a competitive bid process.
Union Bank Corporate Office in Lagos.
The statement however, noted that completion of the sale is subject to regulatory approvals from the relevant regulatory authorities in Nigeria and the United Kingdom.
Chief Executive Officer of Union Bank, Emeka Emuwa, said the proposed divestment would help the bank to focus on its core competencies in Nigeria.
Chief Executive Officer of Union Bank, Emeka Emuwa.
In his words, “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.” He added
For his part, Founder and CEO of the preferred bidder, MBU Capital, Mohammed Iqbal, said acquisition of the subsidiary offers an opportunity for innovation.
“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.”