By Peter Egwuatu
Union Bank of Nigeria Plc has entered a share sale and purchase agreement to sell its United Kingdom subsidiary, Union Bank UK Plc.
The bank said that following a competitive bid process, MBU BidCo Limited (“MBU”), an acquisition vehicle wholly owned by MBU Capital Limited (“MBU Capital”), was selected as the preferred bidder.
In a statement obtained by Vanguard, Union Bank, stated: “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, Chief Executive Officer of Union Bank, Emeka Emuwa, 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.”
Mohammed Iqbal, Founder and CEO of MBU Capital also said: “We are delighted to announce the acquisition of Union Bank UK, subject to regulatory approval. 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.”