The Chief Executive Officer of Union Bank, Mudassir Amray, has revealed that the lender will go ahead to merge with Titan Trust Bank despite an existing lawsuit by aggrieved shareholders trying to stop the merger.
Ripples Nigeria had reported two weeks ago that, lawyers and SANs; Charles Mekwunye and A.M. Makinde, representing their interest as shareholders, filed a case at the Federal High Court in Lagos to nullify the acquisition and return both parties to status quo.
Titan Trust Bank had acquired Union Bank in December 2022, a move that shocked the private sector, considering the former was established four years ago, while the latter had been operating commercial banking in the last 105 years.
Titan Trust Bank acquired 93.41 percent stake in Union Bank, but not all shareholders agreed to the deal, as Mekwunye and Makinde stated that the acquisition was done in a private treaty instead of buying the shares on the trading floor of the Nigerian Stock Exchange (NGX).
They stated that Titan Trust Bank isn’t profitable enough, nor does the firm possess the financial requirements to takeover Union Bank, considering the former only secured its banking license two years ago.
The aggrieved shareholders labelled the deal invalid, and said it was unconstitutional for the Central Bank of Nigeria (CBN), asking the court to grant their suit to dismiss the acquisition.
With the case still in court, Amray said both Union Bank and Titan Trust Bank will be going forward with the acquisition, integrating their operation to enable them grow into a tier-one bank.
He said the integration will be completed before the end of September 2022, Amray stated in the bank’s Q2 2022 financial statements, “Following the successful acquisition of majority shares of the Bank by Titan Trust Bank, we are now focused on strengthening the core business and improving operational efficiencies across board.
“In parallel, we are going full throttle on integrating the two banks to form a ‘stronger Union’ positioned to deliver value to all stakeholders, leveraging technology and digital innovation. The integration is expected to be completed by the end of the third quarter.” The CEO said.
Amray continued, “Since taking the reins as Chief Executive Officer as at June 2nd, 2022, I am confident that the Bank has all the necessary ingredients to be a tier 1 bank.
“As we drive towards a seamless integration in the second half of the year, we remain committed to achieving our business objectives. We are excited about exploiting the synergies from the newly expanded franchise post integration.”
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