Union Bank Of Nigeria To Sell Off UK Subsidiary 

Union Bank of Nigeria (UBN) Plc has announced plans to divest 100 per cent of its equity stake in the Union Bank UK Plc (UBUK).

The bank disclosed this on Tuesday in a statement by its company secretary, Somuyiwa Sonubi, which was published on the website of the Nigerian Stock Exchange (NSE).

The bank said the decision was part of its effort to streamline its business operations and focus on growth opportunities in Nigeria.

The statement reads in part: “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.”

It added that the sale was made after due consultation and regulatory approvals from the relevant regulatory authorities in Nigeria where the parent company is situated and the UK.

Commenting, the bank’s Chief Executive Officer, Emeka Emuwa  said the move will drive financial inclusion in Nigeria.

According to him: “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 organisation 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.”

The Founder and Chief Executive Officer of MBU Capital, Mohammed Iqbal expressed delight at the development, adding that the company will utilize the advantage to meet the needs of the UK and private businesses.

“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.”