Rising particulars of the controversial acquisition by a small Titan Financial institution of the large, Union Financial institution supply an fascinating peep into the workings of banks and their controlling shareholders who the CBN particular investigator says labored in live performance with the previous governor of the apex financial institution, Godwin Emefiele.
Our reporter who has been patching collectively trails of the various contacts between each events, has now recognized key timelines within the journey to the acquisition.
Though there had been prior clandestine contacts, the journey started formally on October 25, 2021 with a request from Titan Financial institution to the Central Financial institution pleading to be allowed to amass Union Financial institution which was established in 1917 and have become generally known as Barclays Financial institution in 1925.
In that letter requesting the approval to buy Union Financial institution, Titan mentioned the acquisition can be accomplished in 4 phases starting with the acquisition of 91.5percentn of the problems shares. It will then be adopted by a compulsory tender supply, MTO for the remaining shares after which a buy-out of any shares that aren’t voluntarily bought on the MTO and eventually the merger of Titan and Union Financial institution with Union Financial institution because the surviving entity.
Titan then disclosed that the transaction can be funded through a mixture of debt and fairness with the previous coming by means of a $300m facility from Afexim financial institution and one other $175m in fairness from two current shareholders of Titan Financial institution, Messrs Luxis Worldwide DMCC and Magna Worldwide DMCC.
BusinessDay can now disclose that on March 3, 2022, the Central Financial institution wrote to Titan providing a ‘no objection’, virtually clearing the best way for Titan to start the humongous acquisition.
On June 3, 2022, Titan Financial institution wrote to the central financial institution to tell the apex financial institution that three days earlier, it paid off the promoting shareholders of Union Financial institution.
Paperwork seen by our reporter confirmed that on October 14, 2022, Titan Financial institution wrote one other letter to the Central Financial institution asking to be allowed to launch a compulsory take-over of Union Financial institution. This request was granted by the apex financial institution through a proper communication on October 24, ten days after the request for an MTO was obtained.
Then on November 2, 2022, Titan financial institution launches the obligatory take-over of Union Financial institution on the again of the CBN approval.
The particular investigator mentioned the bodily addresses in Dubai claimed by the important thing traders in Titan Financial institution, Messrs Luxis Worldwide DMCC and Magna Worldwide DMCC couldn’t be situated after visits by officers from the Nigerian embassy within the UAE.
Nevertheless, a gathering known as between the administrators of Union Financial institution, Titan Financial institution and the deputy Governor of the CBN in control of monetary system stability didn’t maintain on the scheduled date of December 5, 2023 and has now needed to be postponed.
Earlier Saturday, BusinessDay reported that the particular investigator had advised President Bola Tinubu that the previous Central Financial institution Governor Godwin Emefiele was linked to the acquisition of each Union Financial institution and Keystone Financial institution and really helpful that they be nationalisation by the federal government.
In a report seen by BusinessDay, the Particular Investigator Jim Obazee famous that whereas formally Union Financial institution’ shareholder is alleged to be domiciled within the UAE, “it was discovered that these entities shouldn’t have bodily presence in Dubai as claimed. This contravenes Part 3 (5) of the Banks and Different monetary Establishments Act, 2020. Accordingly, they don’t seem to be purported to be allowed to function or purchase a financial institution in Nigeria.”
