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How Union Bank receives N8 billion cash for sale of UK subsidiary to Fidelity Bank …..Confirms Titan Trust Bank owns 94.5% of the bank

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* Union Bank Plc has confirmed the sale of its UK subsidiary, Union Bank UK, to Fidelity Bank generated a cash consideration of N8 billion.

* The sale was part of Union Bank’s restructuring plan to focus more on the Nigerian market and improve its capital base.

* It also confirmed Titan Trust Bank now owns 94% of the bank.

 

Union Bank Plc confirmed it sold its UK subsidiary, Union Bank UK for a cash consideration of N8 billion only. This is according to the information contained in its financial statements for the period ending December 2022.

 

The bank sold the subsidiary to local competitor, Fidelity Bank in May 2022 in a transaction that was initially reported as an undisclosed amount.

 

A cursory view of the transaction details shows Union Bank (group) posted a capital loss on the sale of the asset as the carrying cost (represented by its net assets) of its UK subsidiary on its books was N16.1 billion.

 

However, on the balance sheet of Union Bank UK, it reported a total asset of N50.89 billion and a net asset of N16.1 billion as of the end of May 2022. Loans advances and customer deposits as of that period were also N11.1 billion and N23.8 billion respectively.

 

 

Despite the sale, Union Bank UK still reported a loss from discontinued operations of N1 billion down from a loss of N2.45 billion as of 2011.

 

What they are saying

Why the sale of Union Bank UK: The sale of the UK subsidiary was part of Union Bank Plc’s restructuring plan to focus more on the Nigerian market and improve the bank’s capital base.

 

The bank also stated that the divestment allows it to channel its focus and capital toward mining the enormous opportunities that the Nigerian market presents.

 

Why Fidelity Bank Acquired it: The acquisition by Fidelity Bank is expected to create a more scalable and sustainable service franchise to support the wider ecosystem of the bank’s trade businesses and diaspora banking services.

 

What Fidelity Bank MD/CEO Mrs. Nneka Onyeali-Ikpe said,

 

“This transaction aligns with our strategic plan of expanding our services touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clients. The diverse bouquet and business model of Union Bank UK offer a compelling synergy and we hope to build on the existing capacity to create a scalable and more sustaining service franchise that will support the wider ecosystem of our trade businesses and diaspora banking services.

Union Bank released its 2022 FY results showing a profit after tax of N31.4 billion up from N20 billion reported a year earlier. The bank concluded a shareholder divestment in 2022 when Titan Bank was announced as the winner of a bid for majority shares of the bank.

 

In its full-year financial statements, the bank classified Titan Trust Bank as owning 94.05% of Union Bank effectively taking over shares of Union Global Partners and Atlas Mara which held 64.99% and 21.2% respectively.

 

* Nairametrics.

News and Report

Lagos broadcast stations decry union violence, 48-hour shutdown

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The management of Lagos State Government-owned broadcast stations has condemned the recent violent actions by striking union members, which disrupted operations and forced the stations off-air for 48 hours.

In a statement issued on Tuesday by the Head of Service, Establishments and Training, Afolabi Ayantayo, it was disclosed that the affected stations—Lagos Television, Radio Lagos/Eko 89.7FM, and Traffic Radio—were attacked on Monday by workers allegedly affiliated with the Nigeria Labour Congress, the Radio, Television, Theatre, and Arts Workers Union, and the Nigeria Union of Journalists.

The statement noted that striking workers reportedly vandalised studio doors, assaulted on-air presenters, switched off transmitters, and severed cables in an attempt to enforce the strike.

“The stations—LTV, Radio Lagos/Eko 89.7FM, and Traffic Radio—were forced off-air for 48 hours by workers who destroyed studio doors and assaulted presenters. They switched off transmitters and severed cables in unprecedented acts of violence, captured on video. Many workers were also whipped for refusing to join the strike, which aimed to pressure the government into placing about 400 workers on the civil service payroll,” the statement read.

Describing the incident as unprecedented, the station managers expressed their disappointment with the unions’ approach.

“Despite the State Government’s open communication channels, the leadership of NLC, RATTAWU, and NUJ chose the path of violence—both in words and actions,” the managers said in the statement.

They further described the strike as not only an attack on the broadcast stations but also a show of disrespect towards state authorities.

“The strike, which the managers have described as an attack and a sign of disrespect for the authorities, has raised doubts about the leadership of the NLC, RATTAWU, and NUJ in Lagos being committed to an amicable resolution of the crisis.”

The statement added that the union leaders have been invited to another meeting scheduled for Wednesday, 15 January 2025, to discuss the issues in dispute.

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CBN Fines Zenith, First Bank, Globus Bank, Others N1.3 Billion For Not Dispensing Cash

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The Central Bank of Nigeria (CBN) has fined nine deposit money banks in Nigeria a sum of N150 million each, amounting to N1.350 billion for failing to dispense cash through their Automated Teller Machines (ATMs) during the yuletide season.

According to the apex bank, the sanctioned banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and two others.

This is according to a press statement on Tuesday by CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.

The statement read “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria (CBN) has sanctioned Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs), during the yuletide season.

“Each bank was fined N150 million for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.

 

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Police uncover two gun manufacturing factories in Benue, arrest suspects

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Operatives of the Benue State Police Command have uncovered two gun manufacturing factories in Guma and Kwande local government areas of the state.

This was disclosed in a statement released on Tuesday by the state Commissioner of Police, Mr Steve Yabanet.

The CP noted that through credible information about criminals manufacturing arms at Mbaafa, Adikpo, Kwande LGA, detectives were deployed to the areas for investigation.

According to him, on January 11, police stormed a gun factory at Mbaafa and arrested one Friday Aduduakamve and Iorwashima Iornyume, aka AK-35.

The CP said that the operatives searched the factory and recovered nine fabricated pistols and one yet to be completed AK-47 rifle, amongst others.

He said that the team also uncovered another gun manufacturing factory in Daudu, Guma LGA, where more arms were recovered.

“As police detectives began intelligence gathering on criminal activities in Daudu, information was received that one Meme Ihoon, 50 years old, was responsible for all short arms being used by kidnappers, armed robbers, and cultists in Daudu.

“During the investigation, the said suspect was arrested on January 10; six dane guns and three long pipes used for fabricating guns were recovered from his house.

“The suspect confessed to having been producing and selling arms. Investigation is ongoing to arrest other criminals connected with the case,” the police spokesman said.

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