Atlas Mara Increases Stake in Union Bank to 49%

Atlas Mara Limited, the sub-Sahara African financial services group, yesterday said that it has agreed to acquire an additional 280,956,166 shares of Union Bank of Nigeria Plc (UBN), approximately a 1.0 per cent shareholding in UBN, following which its combined direct and indirect shareholding in UBN will increase to 49.0 per cent from 48.0 per cent.

The Company will issue 2,360,032 ordinary shares as consideration for the UBN shares acquired.

According to report from Atlas Mara, applications have been made for the New Shares to be admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange. Admission is expected to become effective, and dealings in the New Shares are expected to commence, at 8:00 am BST on 27 June 2018.

The New Shares will rank pari passu with the existing ordinary shares. Following admission of the New Shares, the Company will have 174,618,767 ordinary shares in issue, of which 1,545,764 shares are in treasury and 3,298,298 shares are held in escrow as part of the contingent consideration for the acquisition of Finance Bank Zambia Limited, as disclosed to the market on 1 July 2016.

“ Atlas Mara hereby confirms that the total number of voting rights in Atlas Mara is 169,774,705. This figure should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules,” the report noted.

Union Bank recorded considerable growth in key performance indicators in the first quarter of this year, giving prospects of better returns for the 2018 business year.

The bank’s interim report and accounts for the first quarter ended March 31, 2018 showed that gross earnings rose by 15 percent while profits before and after tax grew by 16 per cent and 17 percent respectively.

The first quarter earnings report, which was released alongside the audited report for 2017 yesterday at the Nigerian Stock Exchange (NSE), showed that Union Bank improved on its commendable performance in 2017.

The three-month report showed gross earnings of N39.5 billion in first quarter 2018 as against N34.3 billion in first quarter 2017. Profit before tax rose from N4.7 billion in first quarter 2017 to N5.4 billion in first quarter 2018. Profit after tax also increased to N5.3 billion in first quarter 2018 compared with N4.5 billion recorded in comparable period of 2017.

Chief Executive Officer of Union Bank, Mr. Emeka Emuwa, said the first quarter results reflected the bank’s renewed focus on driving efficiency and productivity with a view to fully leveraging resources including human, technology and new capital to maximize the bottom line.

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