Titan Trust Bank Contradict Illegal Attainment Of Union Bank.

Titan Trust Bank Contradict Illegal Attainment Of  Union Bank. Titan Trust Bank refuted the claim that it had unlawfully acquired Union Bank...

Titan Trust Bank Contradict Illegal Attainment Of  Union Bank.

Titan Trust Bank refuted the claim that it had unlawfully acquired Union Bank.

According to a special investigator's report, former Governor Godwin Emefiele of the Central Bank of Nigeria (CBN) acquired Union Bank of Nigeria through proxies.

Ismaila Isa Funtua, a late ally of former President Buhari, was also charged in the report with the purchases of Keystone and Polaris banks.

A note that was delivered to Tinubu on December 20, 2023, included specifics about these bank purchases that had place over time.

The document titled "Report of the Investigation of Titan Trust Bank's Purchase of Union Bank of Nigeria" details the precise actions purportedly conducted to acquire Union Bank.

However, Titan Trust Bank claimed in a statement that the transaction was lawful and transparent in response to the inquiry.

In addition to regulatory clearances purportedly received from the Securities and Exchange Commission, Central Bank, and other agencies, the statement described the acquisition process involving respectable businesses like PwC and Norton Rose Fulbright.

The text states, "On December 18, 2021, Titan Trust Bank Limited (on the buy side) and Atlas Mara Limited, Union Global Partners Limited, Emeka Emuwa, Standard Chartered Bank, Montane Partners West Africa Limited, TLG Africa Growth Impact Fund, and Sanlam Life Assurance Limited (on the sale side) inked a Share Sale and Purchase Agreement (SPA) (also known as the bulk shareholders).

Collectively, the majority shareholders held 93.41% of the outstanding capital of shares in Union Bank. A protracted and arduous due diligence procedure including top financial and technical consultants resulted in the creation of the SPA.

In order to do financial and legal due diligence, Titan Trust Bank enlisted the help of respectable companies such as PricewaterhouseCoopers Limited (PWC), Drey Law Practice (DLP), Norton Rose Fulbright (NRF) UK, and Citibank London. The transaction's legal consultants were White & Case, a well-known UK law firm that the bulk stockholders hired.

With proper Certificates of Capital Importation verifying the monies' legal origins, Titan Trust Bank emphasised the $190 million stock infusion and $300 million debt financing from its significant shareholders.

"The most transparent, open, and professional bidding process was used to complete the transaction.

The transaction was financed by a mix of loans totaling $300 million and an extra $190 million in stock given by Magna International DMCC and Luxis International DMCC, two of TTB's largest owners.

Where needed, the Certificates of Capital Importation (CCI) for the loan and equity financing are provided as proof that the money entered Nigeria lawfully.

"TTB requested and received the required regulatory approval from its principal regulator, which included, among others, the Federal Inland Revenue Service (FIRS), the Nigerian Exchange Limited (NGX), the Securities and Exchange Commission (SEC), and the Central Bank of Nigeria (CBN).

The statement continued, "A change in control was effected with the dissolution of the former Board and the reconstitution of a new Board with new leadership following TTB's acquisition of 93.41% controlling interest in Union Bank on June 1, 2022."

The bank refuted allegations of a drawn-out procedure by emphasising its dedication to guaranteeing complete adherence to legal requirements and industry standards, culminating in a candid and transparent acquisition.

It restated their commitment to working with the investigative team and categorically refuted any fraud or unlawful activity.

Following its lawful acquisition of 93.41% of Union Bank, TTB proceeded to undertake a Mandatory Takeover Offer (MTO), bringing the percentage of Union Bank shares that were float to less than 20%. Offering minority owners the chance to sell their own shares on the same terms as bulk shareholders was the main goal of the MTO. After obtaining the necessary regulatory permits, the MTO was carried out.

Due to TTB's and the authorities' resolve to make sure the process is completely compliance with current laws, matches best worldwide practices, and is performed in an open and transparent manner, the acquisition and eventual merger with Union Bank have progressed slowly.

"The Board and Management of TTB and Union Bank have provided the investigative team with all relevant information throughout the special investigation.

"The acquisition is not unlawful or fraudulent as claimed. We demand that this acquisition be considered among the most transparent and professional in this nation's history," the bank stated.

In response to inquiries concerning ownership, Titan Trust Bank disclosed the ownership structure, which included well-known international businessmen Mr. Raul Savara and Mr. Cornelis Vink.

According to the statement, "The Board and Management provided the special investigators with the share ownership structure in TTB, including the holdings of Magna International DMCC and Luxis International DMCC owned by Mr. Raul Savara and Mr. Cornelis Vink, in relation to allegations relating to the ownership of Titan Trust Bank.

These are well-known international businesspeople who have successful companies in Nigeria and other nations. At the Corporate Affairs Commission (CAC), the shareholding structure can also be verified.

Amidst the current miscommunication, the bank asked all parties involved to maintain composure and assured them that it would keep working to uphold openness and confidence.