Union Bank Insists On Sale Of UK Subsidiary

Union Bank of Nigeria (UBN) Plc has restated its commitment to
the sale of its United Kingdom’s (UK) subsidiary, Union Bank UK
(UBUK) Plc, despite the delay in the transaction process.

Chief Financial Officer, Union Bank of Nigeria (UBN) Plc, Joe
Mbulu said UBUK remains classified as “available for sale” as the
sale process continues, although delayed due to the
pandemic-induced lockdowns.

Union Bank had entered into a share sale and purchase agreement
to divest its 100 per cent equity stake in UBUK more than a year
ago. The delay had generated concerns within the investing
public.

The Board of Union Bank had stated that the sale was in line
with the bank’s strategy to geographically streamline its business
operations to focus on growth opportunities in Nigeria.

According to the bank, following a competitive bid process, MBU
BidCo Limited (MBU), an acquisition vehicle owned by MBU Capital
Limited (MBU Capital), was selected as the preferred bidder. The
completion of the sale is, however, still subject to regulatory
approvals from the relevant regulatory authorities in Nigeria and
the UK.

MBU Capital is an investment management firm founded in 2013 and
based in Mayfair, London. MBU Capital has active interests in
financial services, healthcare, education, real estate and
technology. MBU Capital (UK) LLP is authorised and regulated by the
Financial Conduct Authority.

Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Emeka
Emuwa said the bank decided that as the banking landscape shifts
towards digital and agency banking to drive financial inclusion,
the Nigerian market presents robust long-term opportunities for
it.

He pointed out that the divestment allows the bank to channel
its focus and capital towards mining the Nigerian 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 which will work with existing
management to deliver a stronger and more profitable entity,” Emuwa
said.

Founder and Chief Executive Officer, MBU Capital, Mohammed Iqbal
said the investment group was delighted with the acquisition,
describing it as 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.

According to him, many customers are seeking a bank which truly
understands the needs of entrepreneurial, fast-growing
businesses.

“We believe that our acquisition and vision for UBUK offers the
potential for significant growth for the bank. We look forward to
working with our new colleagues at UBUK to continue to service the
needs of its clients. We also look forward to sustaining and
deepening relationships with UBUK’s existing trading partners,”
Iqbal said.

Union Bank of Nigeria (UBN) Plc has restated its commitment to
the sale of its United Kingdom’s (UK) subsidiary, Union Bank UK
(UBUK) Plc, despite the delay in the transaction process.

Chief Financial Officer, Union Bank of Nigeria (UBN) Plc, Joe
Mbulu said UBUK remains classified as “available for sale” as the
sale process continues, although delayed due to the
pandemic-induced lockdowns.

Union Bank had entered into a share sale and purchase agreement
to divest its 100 per cent equity stake in UBUK more than a year
ago. The delay had generated concerns within the investing
public.

The Board of Union Bank had stated that the sale was in line
with the bank’s strategy to geographically streamline its business
operations to focus on growth opportunities in Nigeria.

According to the bank, following a competitive bid process, MBU
BidCo Limited (MBU), an acquisition vehicle owned by MBU Capital
Limited (MBU Capital), was selected as the preferred bidder. The
completion of the sale is, however, still subject to regulatory
approvals from the relevant regulatory authorities in Nigeria and
the UK.

MBU Capital is an investment management firm founded in 2013 and
based in Mayfair, London. MBU Capital has active interests in
financial services, healthcare, education, real estate and
technology. MBU Capital (UK) LLP is authorised and regulated by the
Financial Conduct Authority.

Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Emeka
Emuwa said the bank decided that as the banking landscape shifts
towards digital and agency banking to drive financial inclusion,
the Nigerian market presents robust long-term opportunities for
it.

He pointed out that the divestment allows the bank to channel
its focus and capital towards mining the Nigerian 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 which will work with existing
management to deliver a stronger and more profitable entity,” Emuwa
said.

Founder and Chief Executive Officer, MBU Capital, Mohammed Iqbal
said the investment group was delighted with the acquisition,
describing it as 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.

According to him, many customers are seeking a bank which truly
understands the needs of entrepreneurial, fast-growing
businesses.

“We believe that our acquisition and vision for UBUK offers the
potential for significant growth for the bank. We look forward to
working with our new colleagues at UBUK to continue to service the
needs of its clients. We also look forward to sustaining and
deepening relationships with UBUK’s existing trading partners,”
Iqbal said.