The audacity with which Titan Trust Bank acquired Union Bank Plc has been raising a lot of posers.
In fact, the acquisition looks just like a scene from another Nollywood movie. A fledging financial institution with hardly a serious presence in the financial industry taking over one of the oldest banks in Nigeria?
This situation has thus seen questions. An analysis by a former Union Bank staff has also raised eyebrows.
Read the viral analysis below:
According to the post, the FGN injected N300b to stabilize/recapitalize Union Bank. This, the post maintains can be confirmed by both the Federal Ministry of Finance and Central Bank of Nigeria (CBN).
The post further stated that a further N239b was deployed into the bank by the Asset Management Corporation of Nigeria (AMCON) to buy off toxic assets on the bank’s books.
With both injections verifiable, it is indeed natural to ask just like this post how did the Federal Government of Nigeria 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?
Like a bad dream, one of the country’s oldest banks was sold with the snap of the finger?
The Bank has now been sold for a fraction of the sunk amount.
Read more of the viral post below:
Tunde Lemo was a Deputy Governor of CBN during the transaction period. By corporate governance provision, is he allowed to be associated with the 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 subsisidiaries and/or other assets?
Who acquired what assert and under what terms/ approvals?
Faruk Gumel is the current Chairman of 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 Direction of Union Bank Mr Emeka Emuwa should provide the answers.
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