Standard Chatered Bank, a member of a strategically aligned group of investors, that came together to form Union Global Partners, has bought 65% stake in Union Bank of Nigeria Plc, or 11,008,274,206 common shares for $500 million dollars. This recapitalization of the bank, comes as a reformist MD, Funke Osibodu, bows out and a new MD, Emeka Emuwa steps in.
The Assets Management Company of Nigeria (AMCON) will still hold 20% of the bank shares, while the existing shareholders will hold 15%. Union Bank of Nigeria Plc. reported 13.6 billion naira profit for half of the fiscal year that ended on June 30, 2012. The Chairman of Union Bank, Dick Kramer, delighted on the move said, “Attracting such a high quality consortium of local and international investors to recapitalize Union Bank demonstrates Nigeria’s potential. In addition, Union Global Partners’ investment in Union Bank provides a compelling vote of confidence for the banking sector. I look forward to working with Union Global Partners and Union Bank in developing long-term sustainable value for all stakeholders.”
