Union Bank Refutes Rumour About Purported Sale Of Owner’s Stake

Leading Nigerian lender, Union Bank has issued a disclaimer against a publication by an online news site stating that its principal shareholder is considering selling its 50% stake in the firm.

The disclaimer was signed by the bank’s Secretary, Somuyiwa Sonubi, and sent to the Nigerian Stock Exchange Market.

Before now, there have been unsubstantiated reports by some online platforms that Union Bank’s principal owner, Atlas Mara is considering selling its stake in the firm, after receiving bids from local banks.

According to the report, Atlas Mara engaged the services of a financial advisor, Rothschild & Co to consider the deal.

Then, Union Bank dismissed the claims, describing it as a mere ‘rumour and speculation’. Further, it advised relevant stakeholders which comprises of the members of the public, its customers, NSE, and other regulatory bodies to disregard the speculation in its entirety.

Atlas Mara also rejected the report and clarified the issue of contracting external advisers, noting that it was in line with the Board’s decision to explore a wide range of strategic options.

An excerpt of the disclaimer issued by the firm reads: “While it is the Company’s practice to refrain from comment on market rumours or speculation, we believe it is important to note that Atlas Mara has not received any offers from any local Nigerian bank or other bank wishing to acquire the Company’s stake in Union Bank of Nigeria (“UBN”). As previously announced to the market in 2019, the Board of the Company has been exploring a wide range of strategic options with the assistance of external advisers. That process is still underway and the Company’s strategic objectives have not changed.’’