By Peter Egwuatu
Fidelity Bank Plc has proposed to acquire Union Bank UK 100 per cent equity stake following a binding agreement it entered with the bank.
Fidelity Bank disclosed this to the Nigerian Exchange Limited, NGX stating that the Central Bank of Nigeria, CBN has issued a no objection.
It is the latest phase in the train of divestments by Union Bank which, beginning late last year, saw it offload 90 per cent of its shareholding to a new owner, Titan Trust.
Fidelity Bank will be acquiring Union Bank UK 100 per cent if the deal goes through, according to a binding agreement between the two stated in a regulatory filing published by the Exchange.
The deal allows SME-focused Fidelity Bank, which holds an international banking permit but has never operated outside its base Nigeria, inroad into the UK market where, in 1983, Union Bank first set foot to provide personal banking, treasury management, and structured trade and commodity finance services.
“The diverse service bouquet and business model of Union Bank UK offered 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,” said Fidelity Bank’s chief, Nneka Onyeali-Ikpe.
The announcement spurred brisk trading in the shares of the acquiring company, leading to Fidelity Bank’s emergence as the second most active stock on the Exchange at closing bell on Tuesday, with 10.2 million units traded in 147 transactions.
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