Union Bank of Nigeria Plc, a first-generation bank in Nigeria has entered a Share Sale and Purchase agreement to sell its United Kingdom subsidiary – Union Bank UK Plc.
Following a competitive bid process, MBU BidCo Limited, an acquisition vehicle wholly owned by MBU Capital Limited was selected as the preferred bidder for Union Bank UK Plc. According to Union Bank, the completion of the sale is subject to regulatory approvals from relevant regulatory authorities, both in Nigeria and the United Kingdom.
While commenting on the planned divestment, Emeka Emuwa, the 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.” He further stated that through the sale, the management of Union Bank will be better positioned to deliver greater value to the organization and its stakeholders as well as continue to build the future of banking in Nigeria.
According to Mr. Emeka Emuwa, the terms of the sale of Union Bank UK delivers substantial value to shareholders, while also entrusting services institution that will work with existing management to deliver a stronger and more profitable entity.
Mohammed Iqbal, Founder and Chief Executive Officer 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 Union Bank UK’s strengths in international markets to create a new-style bank which is focused on the needs of UK and international SME’s and entrepreneurs.”