Earlier this week, Union Bank Plc announced that its core shareholders had reached a deal that will see their shares acquired by 2-year-old Titan Bank.
The deal will see existing core investors in Union Bank, Union Global Partners Ltd (64.98%), Atlas Mara (25.53%) and other shareholders divest their core holdings totalling 89.39% in Union Bank to Titan Trust Bank.
The bank did not comment on the purchase consideration.
As expected, the announcement aroused excitement among investors and the general public considering how significant a bank like Union Bank is to the Nigerian economy historically and financially.
Although Union Bank is a household name in Nigeria, many Nigerians may not be fully aware of who owns Titan Bank as well as who the people that run it are.
According to a report by Nairametrics, Titan Trust Bank was approved as a national commercial bank in Nigeria in 2019 and commenced operation in October of the same year.
The bank currently has two bank branches and styles itself as a digital bank, a common focus for newer banks looking to challenge the more established commercial banks.
In its financial statement, Titan Bank reported gross earnings of N8.5 billion in 2020 up from N2.5 billion reported a year earlier when it just commenced operations.
It commenced operations in October 2019.
Profit after tax was N2.9 billion delivering a return on average equity of about 8%.
The company has customer deposits of about N85.9 billion and loans and advances of about N38.7 billion.
Its Net Assets as of 2020 is N32.9 billion.
Most of the company revenues come from fees generated from Letters or credits and from trading forex.
Titan Bank has 7 directors namely Tunde Lemo (Chairman), Mudassir Amray (MD/CEO). Andy Ojei (Non-Executive Director), Alhaji Abubakar Mohammed (Independent non0Executitive Director), Mackombo Chukwudi Lawrence Omoile (Independent non-Executive Director) and Dr Adaeze Udensi (Executive Director).
Its Management team comprises Amray, Dr Udensi, Ademola Ajayi (Head of Compliance). Stella Nwihim (Head of Human Resources), Mark Oguh (Chief Financial Officer), Chineyeoke Uga (Chief Risk Officer) and Uche Ugboh (Treasurer).
Dr Adaeze for those who remember is a veteran of Zenith Bank Plc and also an executive director at Heritage Bank.
Amray was once the Managing Director / Group Head of Global Corporate & Investment Banking & Senior Credit Officer for Citibank Nigeria and Ghana.
Oguh was also the former CFO of Diamond Bank between 2015 and March 2019.
A search of Titan Bank’s shareholding structure reveals the following information.
Aminu Yao 5,299,700 (9.07%)
Luxis Int’l DMCC 28,090,400 (48.09%)
Magna Int’l DMCC 21,840,000 (37.39%)
They are all related parties to the Tropical General Investment Group (TGI).
Titan Trust Bank is owned majorly by TGI.
Tropical General Investments (TGI) Group is an international investment and holding company with diversified interests and investments across Africa, The Middle East, Asia and other emerging markets. TGI’s investments focus on driving inclusivity and value addition using locally sourced raw materials, state-of-the-art manufacturing facilities and a highly skilled workforce to produce world class products that are consumed both locally and exported to global markets. Across markets, TGI Group owns over a hundred leading brands in Fast Moving Consumer Goods, Agricultural Inputs, Industrial Chemicals, Homecare Products and Pharmaceuticals.
One of TGI’s most notable companies was CHI Limited makers of the popular Chivita products. TGI eventually sold the company to Coca-Cola in 2019.
TGI also owns WACOT Rice Mill located in Kebbi State which is said to be the largest parboiled rice mill in Africa.
The purchase consideration was not disclosed, however, we understand it is in the region of $1 billion.
It was gathered that TGI owns up to 85% of Titan Trust Bank while the balance is owned by other shareholders of Nigerian origin.