MBU BidCo (MBU), an acquisition vehicle owned by MBU Capital, has been selected as the preferred bidder for the sale, following a competitive bid process
Nigeria-based commercial bank Union Bank of Nigeria has signed an agreement to divest of its 100% equity stake in Union Bank UK (UBUK) to MBU BidCo (MBU).
The bank said that the MBU, an acquisition vehicle owned by MBU Capital, has been selected as the preferred bidder for the sale, following a competitive bid process.
According to Union Bank, the sale is part of its strategy to geographically streamline its business operations to focus on growth opportunities in Nigeria.
MBU Capital founder and CEO Mohammed Iqbal 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.
“Many of these 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.”
Union Bank has introduced UnionKorrect, UnionGoal and UnionBetta in Nigeria
Union Bank was established in 1917, and offers retail, commercial and corporate banking services, through a network of more than 300 sales and service centres across Nigeria.
The bank has undergone a transformation programme in 2012 with recapitalisation from new investors and a new executive management team, to strengthen its position as a financial services provider in Nigeria.
Union Bank said that in addition to standard current and savings products, it has introduced innovative products into the Nigerian retail market, including UnionKorrect, UnionGoal and UnionBetta.
The completion of the transaction is subject to regulatory approvals from the relevant regulatory authorities in Nigeria and the UK.
Union Bank chief executive officer 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.
“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.”