Titan Trust’s Acquisition Of Union Bank Takes Fresh Twist
2 min read
Questions are being asked over the recent acquisition of one of Nigeria’s oldest financial institutions, Union Bank, by the fledgling Titan Trust Bank.
The questions, articulated by a concerned former Union Bank staffer, is contained in a write-up entitled ‘Titan Trust bank acquisition of Union Bank’.
This media platform has earlier reported the mouth watering acquisition of the bank whose slogan, Big, Strong and Reliable’ has been relegated.
Below are the powers as contained in a viral post:
Federal Government of Nigeria (FGN) injected N300b to stabilize/recapitalize Union Bank. Federal ministry of finance and Central Bank of Nigeria (CBN) can confirm this position.
A further N239b was deployed into the bank by Asset Management Corporation of Nigeria (AMCON) to buy off toxic assets on the bank’s books.
How then did FGN end up with 21% of the bank while Union Global Partners (foreign investment vehicle) walked away with 64% stake when it only invested N78b ($500m @ N155/$ in 2011?
The Bank has now been sold for a fraction of the sunk amount.
Is National Assembly of the Federal Republic of Nigeria (NASS) not aware of these issues?
Tunde Lemo was a deputy governor of CBN during the transaction period. By corporate governance provision, is he allowed to be associated with acquisition of this same intervened bank as a beneficiary?
Union bank was a group comprising of seven companies in 2011 but now reduced to one commercial entity without recourse to FGN
What happened to all the subsidiaries and/or other assets?
Who acquired what assets and under what terms/ approvals?
Faruk Gumel is the current Chairman of Nigeria Sovereign Investment Authority (NSIA), a state establishment and at the same time a Group Executive Director with TGI, the major shareholder in Titan Bank the new owners in union Bank. Does this transaction qualify at arm’s length as defined by Nigeria corporate governance provision?
Perhaps the President and Commander in Chief as well as leadership of NASS should ask these questions and more. CBN, Amcon, Federal ministry of finance, and erstwhile Managing Director of Union Bank, Mr Emeka Emuwa, should provide answers to these questions.
