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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

Edo 2024: Court summons APC Candidate, Monday Okpebholo over alleged false date of birth…..

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The candidate of the All Progressives Congress in the September 21 governorship election in Edo State, Monday Okpebholo, has been summoned by a Magistrate’s Court in Abuja for allegedly making a false statement on his date of birth.

 

A document sighted by Saturday PUNCH showed that Okpebholo was asked to appear before the court at 12 noon on Friday, September 20 by Magistrate Abubakar Mukhtar.

 

He is accused of claiming conflicting dates of birth in his nomination forms submitted to the Independent National Electoral Commission to contest the election.

 

 

Whereas your attendance is required to answer to a charge of making a false statement on oath, you are summoned to appear in person before the Magistrate Court at Wuse Zone 2 on the 20th of September, 2024, at 12 noon,” the summons read.

 

 

The case, with suit no CR/W22/816/2024, was instituted by an indigene of Edo State, Honesty Aginbatse, who alleged that Okpebholo claimed he was born on 29/08/1970 in the form submitted to INEC, while another document submitted by him states 29/08/1972 as his date of birth.

 

Aginbatse said, “The defendant, on 24/03/2024, submitted a list of his personal particulars dated 05/03/2024 to INEC wherein he made a statement in item number 4 in Part B, stating that he was born on 29/08/1970. A certified true copy (C.T.C) of the list of personal particulars submitted to INEC by the defendant is attached to this complaint and marked as Exhibit B.”

 

 

In the same Exhibit B, the defendant made a declaration on oath dated 05/03/2024, supported by a verifying affidavit, wherein he attached several documents, including a Statutory Declaration of Age deposed to on 04/06/2022 by one Okpebholo Ojeifo Joseph; marked as Exhibit C in this complaint, and a West African Senior School Certificate with Candidate and Certificate numbers 4320545182 and NGWASSCS11023655 respectively, marked as Exhibit D in this complaint. The said Exhibit D contains a statement indicating that the defendant was born on 29/08/1972, which is false in all its material particulars.”

 

 

This is particularly so, as the statutory declaration of age mentioned in paragraph 7 above as Exhibit C, which in law stands in the stead of the defendant’s Birth Certificate, definitively affirmed that the defendant was born on 29/08/1970.”

 

 

 

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Marketers to start lifting petrol from Dangote refinery on Sunday September 15

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25m litres to be delivered daily via NNPC Trading Ltd…

Dangote Refinery is set to commence the distribution of its refined petrol to retail outlets across Nigeria starting this Sunday, BusinessDay’s findings have revealed.

 

Sources said the pump price of petrol will remain unchanged, despite the introduction of its product into the market. The initial daily allocation is expected to be 25 million litres, delivered through the NNPC Trading Limited at a cost of N765.99 to marketers.

 

 

NNPC Trading Limited will continue to import a shortfall of 15 million litres to meet Nigeria’s daily demand for petrol estimated at 40-50 million litres a day,” a source said.

 

 

He added, “Each marketer will take a maximum of 50 trucks daily; They will buy at a price of N765.99 through the NNPC Trading Limited, including their costs movement and sell at the current pump price of N855 to N897 depending on the location per litre”.

 

 

To ensure a smooth transition, marketers have been instructed to start sending their trucks to the refinery today to facilitate the lifting process.

 

He added, “Next month Dangote refinery will move to a daily allocation of 30 million litres from then marketers will be picking by vessels”.

 

 

Findings showed there will be a joint statement by both NNPC and Dangote refinery teams who are currently meeting in Abuja.

 

The move is expected to significantly boost the country’s fuel supply and alleviate the challenges faced by consumers.

 

Dangote Refinery, located in Lekki Free Trade Zone, Lagos, is a major milestone in Nigeria’s industrialization efforts. Its operationalisation is expected to reduce the country’s dependence on imported petroleum products and contribute to economic growth.

 

 

European refineries

Dangote’s production is expected to impact billions of dollars of trade in fuel markets regionally and beyond as Nigeria remains a global demand sink for the fuel, receiving almost 250,000 barrels a day in shipments last year, mostly from Europe, according to data from analytics firm Vortexa Ltd.

 

For decades, European refiners have enjoyed a lucrative market in Nigeria as an unreliable power supply from the national grid forces companies across Africa’s fourth-biggest economy to rely heavily on imported refined products with a net value of $17 billion annually.

 

 

Traders and shipping data seen by BusinessDay showed Nigeria’s new Dangote refinery is ramping up gasoil exports to West Africa, capturing market share from European refiners.

 

“As much as ‪300-400,000 barrels per day (bpd) of refining capacity in Europe is at risk of closure because of rising global gasoline production,” Andon Pavlov, an analyst at Kpler, a global trade intelligence platform, said in a note.

 

 

 

 

 

 

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Just In: FG declares Monday September 16 public holiday

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The federal government has declared Monday, September 16 as a public holiday to mark the celebration of the Eid-ul-Mawlid, the birth of the Prophet Muhammad,

 

This was disclosed in a statement today by the Permanent Secretary, Ministry of Interior, Dr. Magdalene Ajani.

 

 

“The Minister of Interior, Dr. Olubunmi Tunji-Ojo, who made the declaration on behalf of the Federal Government, congratulated Muslim Ummah both at home and in the Diaspora on this occasion,” the statement read.

 

 

The minister called on the Muslim Ummah and, by extension, Nigerians, to imbibe the spirit of patience, sacrifice, and resilience.

 

“While congratulating the Muslim Ummah on the occasion, the Minister implored them to use the opportunity of the period to pray for enduring peace and a more prosperous egalitarian nation,” the st

atement read.

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