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Business News of Friday, 17 June 2022

Source: www.premiumtimesng.com

Titan Trust Bank raises $300 million from Afreximbank to fund Union Bank takeover

Titan Trust Bank Titan Trust Bank

Titan Trust Bank got $300 million financing to complete the buyout of a controlling stake in Union Bank, according to the investment bank that midwifed the deal.

PAC Capital Limited facilitated the raise of the much-needed cash from Cairo-based African Export-Import Bank (Afreximbank), Humphrey Oriakhi, the CEO of the investment bank, said in an emailed statement sent to PREMIUM TIMES.

“Specifically, the arranged funding completed the funds required for the proposed acquisition,” Mr. Oriakhi said.

Afreximbank believes the takeover will help unlock tremendous value as the combined entity is anticipated by Titan Trust Bank to provide financing in the region of $3 billion in the medium term. $600 million of that sum is planned to go into backing intra-regional trade finance.

PAC Capital has executed fundraising and offered financial advisory services in sectors including power and energy, aviation, financial services, agro-allied & hospitality and telecommunications within Nigeria and across the continent.

Titan Trust Bank announced a fortnight ago it had consummated the share purchase pact leading to its acquisition of a 93.4 percent in Union Bank, a transaction that first became public knowledge in December.

That was followed by a dissolution of the latter’s board.

TGI Group, the parent company of Titan Trust Bank, has more than 15 subsidiaries with interest spanning sectors like pharmaceuticals, fast-moving consumer goods, industrial chemicals, agricultural inputs and homecare products.

The investment firm has footprints in Africa, Asia, the Middle East and other emerging markets.