UNION BANK

  • EDITOR'S CHOICE
  • Dec 23, 2021
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  • Comments Off on BANWO & IGHODALO, G. ELIAS ACT AS LEGAL ADVISERS IN UNION BANK MEGA DIVESTMENT

BANWO & IGHODALO, G. ELIAS ACT AS LEGAL ADVISERS IN UNION BANK MEGA DIVESTMENT

Some of Nigeria’s leading legal brands have acted as Legal Advisers in the mega divestment of shareholders of Union Bank Plc to Titan Trust Bank (TTB), the newest national commercial bank in Nigeria which started operation in October 2019.

While Banwo & Ighodalo acted alongside White & Case LLP as Legal Advisers to the selling shareholders of Union Bank, G. Elias & Co. acted as Legal Advisers to TTB alongside Norton Rose Fulbright LLP, Drew Law Practise.

CITY LAWYER notes that the ground-breaking deal will see Union Bank’s majority shareholders, Union Global Partners Limited, Atlas Mara Ltd and other divest their shareholding in Union Bank to TTB, thereby making TTB the new majority shareholder of Union Bank. According to a notice to the NGX and Securities Exchange Commission, the agreement, which is subject to regulatory approvals and other financial conditions, will upon completion transfer 89.39% of Union Bank’s issued share capital to TTB.

Reacting on the transaction, the Chairman, Union Bank, Mrs. Beatrice Hamza Bassey, said: “On behalf of the Board, we congratulate all the parties involved in reaching this phase of the transaction and the Board looks forward to supporting the next steps to ensure a seamless completion of the process following regulatory approvals.

“We are grateful to our current investors whose significant and consequential investments over the past nine years facilitated the transformation of Union Bank, one of Nigeria’s oldest and storied institutions. Today, the bank is well-positioned with an innovative product offering, a growing customer base of over six million and consistent year on year profitability.

“This is a solid foundation for our incoming investors to build on as we move into a new era for the bank.”

Also the chairman, Titan Trust Bank, Mr. Tunde Lemo, OFR said, “The Board of Titan Trust Bank and our key stakeholders are delighted as this transaction marks a key step for Titan Trust in its strategic growth journey and propels the institution to the next level in the Nigerian banking sector.

“The deal represents a unique opportunity to combine Union Bank’s longstanding and leading banking franchise with TTB’s innovation-led model which promises to enhance the product and service offering for our combined valued customers.” He said

On his part, the executive Officer, Union Bank, Mr. Emeka Okonkwo stated, “This transaction marks a significant milestone in the journey of our 104-year old Bank. Whilst thanking our current investors for their unwavering commitment to the Bank over the years, we welcome our new core investor, TTB. We recognize the strategic fit between the two institutions and expect that this deal will deliver the best outcome for our employees, customers and stakeholders. We look forward to collectively writing the next exciting chapter for Union Bank.

The Chief Executive of Titan Trust Bank, Mr. Mudassir Amray said: “After completing over two years of operations with aggressive organic growth, we are excited to have an opportunity for a significant leap forward in market share. UBN’s widespread presence, state of the art technology platform, quality staff and strong brand loyalty fits well with our synchronized modular strategy. We look forward to delivering superior results for the benefit of our staff, customers, shareholders, and stakeholders.”

Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank has a network of over 280 sales and service centers across Nigeria.

TITAN BANK

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  • EDITOR'S CHOICE
  • Aug 03, 2021
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  • Comments Off on OIL FIRM DEBUNKS HEIST, SAYS UNION BANK OWES 2.56 BN POUNDS

OIL FIRM DEBUNKS HEIST, SAYS UNION BANK OWES 2.56 BN POUNDS

Petro Union Oil and Gas Company Ltd (Petro Union) has debunked an allegation that the Barclays Bank cheque in favour of the oil company is “attempted bank heist,” saying the allegation is “myopic and uninformed.”

In a rejoinder made available to CITY LAWYER titled “REJOINDER: THE LARGEST BANK ROBBERY IN HISTORY – ABOUT TO HAPPEN IN NIGERIA (THE ALVIN REPORT),” the company stated that it “denies the assertions in the said publication as being incorrect and misconceived.”

According to Petro Union, “Such sponsored publications are not completely surprising as some persons having lost at the trial in 2014, at the Court of Appeal in 2018 and unsuccessfully attempted to appeal to the Supreme Court in 2019 and maybe seeing the futility of their further attempt at the Supreme Court, may have become constrained to resort to media trial.”

Below is the full text of the statement.

26th July ,2021

REJOINDER:     THE LARGEST BANK ROBBERY IN HISTORY – ABOUT TO HAPPEN IN NIGERIA (THE ALVIN REPORT)

INTRODUCTION

The attention of our Company – Petro Union Oil and Gas Company Ltd (Petro Union) – has been drawn to a publication captioned “THE LARGEST BANK ROBBERY IN HISTORY – ABOUT TO HAPPEN IN NIGERIA” credited to one Tope Fasua published on 13th July, 2021 in an obscure online platform – The Alvin Report. The Company hereby denies the assertions in the said publication as being incorrect and misconceived.

Our initial reaction was to ignore the said publication as one of those possibly sponsored media and psychological tactics but on a further thought, we deemed it important to react and set the records straight for the umpteenth time at least for the benefit of unsuspecting members of the public who were deliberately targeted to be misled by the said publication. Such sponsored publications are not completely surprising as some persons having lost at the trial in 2014, at the Court of Appeal in 2018 and unsuccessfully attempted to appeal to the Supreme Court in 2019 and maybe seeing the futility of their further attempt at the Supreme Court, may have become constrained to resort to media trial.

BACKGROUND

The Federal High Court delivered Judgment in favour of our Company in suit no. FHC/ABJ/M/104/2012 since 11th March, 2014 which Judgment was affirmed by the Court of Appeal on 5th June, 2018 in appeal no. CA/A/258/2014. This Judgment was arrived at based on cogent, compelling and credible evidence adduced by Petro Union. Union Bank was represented at the Court of Appeal by a team of senior lawyers led by Tayo Oyetibo, SAN while CBN was represented by a team led by D. D. Dodo, SAN.

The concurrent subsisting findings of both courts is that Central Bank of Nigeria (CBN) and Union Bank PLC are in custody of our Company’s foreign capital in the sum of 2, 556, 000,000 GBP (Two Billion, Five Hundred and Fifty-Six Million Pounds Sterling). As at the time of the Judgment in 2014, the Naira was much stronger and had more value than it does presently and the Judgment sum would not have translated to billions of Naira now that our currency is weak only if the Judgment Debtors promptly complied with the Judgment and honoured their obligation without allowing post-judgment interest to accrue.  

The initial attempt by Union Bank to challenge the Judgment of the Court of Appeal at the Supreme Court was unsuccessful as the apex Court in its decision of 16th December, 2019 dismissed Union Bank’s application and held that their appeal was incompetent. At this stage, Union Bank’s legal team was led by Prof. Koyinsola Ajayi, SAN. Still unwavering, Union Bank subsequently filed yet another application for leave to appeal, through its legal team led this time by Adegboyega Awomolo, SAN, which application is currently pending before the Supreme Court. Possibly realizing the futility of a further attempt at challenging the decisions at the Supreme Court, it appears that some persons have resorted to media trial over the matter by sponsoring fallacious and malicious publications, like the Alvin Report publication of 13th July 2021, to whip up public sentiments.

ISSUES RAISED IN THE SPONSORED PUBLICATION ARE AFTER-THOUGHTS, FALSE, NON-EXISTENT, IMPROBABLE AND/OR IRRELEVANT AND WERE NEVER RAISED AT THE TRIAL

Worthy of note is that all the non-existent and/or irrelevant issues/posers raised in the Alvin Report publication were never raised as a defense or even put forward as mere points to dissuade the court at the trial by CBN or Union Bank who both actively participated in the proceedings which culminated into the Federal High Court subsisting Judgment of 11th March, 2014 in favour of Petro Union. This is simply because they are mere afterthoughts. As it is common knowledge, CBN is a statutory body established by an Act of Parliament and it is vested with a number of functions, objectives and mandates which include the supervision of commercial banks, like Union Bank, and other banking operations.

Undoubtedly, the CBN with all its statutory powers would have had no difficulty in tracing and obtaining evidence on all the false and misconceived issues raised in the said Alvin Report publication. Because these issues are non-starters and fabricated, they were not raised at the trial which had CBN and Union Bank as Parties.  As stated earlier, both banks were represented by Counsel of their choice, at the trial, who never raised any of these issues which they now claim happened and/or existed as far back as in the 80’s and 90’s. This makes their later day after-thoughts more improbable and incredible.

Put differently, at the trial in suit no. FHC/ABJ/M/104/2012 which commenced in 2012, neither CBN nor Union Bank (who were both Respondents and represented by Counsel), who reasonably ought to have known with due diligence if true, contended and/or raised any of the misconceived issues raised in the Alvin Report publication credited to one attention-seeking Tope Fasua.

MISCONCEIVED COMPARISM AND/OR CATEGORIZATION OF THE JUDGMENTS IN FAVOUR OF PETRO UNION AS BANK HEIST/SCAM

We have also noted with dismay the author’s unfortunate and baseless comparism of the subsisting Judgment (arising from the Company’s foreign capital) in favour of Petro Union with unrelated bank robberies/thefts that have no connection whatsoever. The author, without basis, probably basking in the euphoria of the benefits from his enablers, alludes that the Barclays bank cheque in favour of Petro Union was an attempted bank heist. What a myopic and uninformed position to take? Although the publication is full of the author’s mere opinion, it is clear that the opinions expressed therein are baseless and actuated by ulterior motives although it may have been intended to be ‘ingenious’ as at the time of putting up the misguided publication. No court anywhere in the world has found and/or convicted Petro Union for fraud or misconduct of any kind.

CLEAR SHOW OF DESPERATION

In further demonstration of the desperation and ulterior motives exhibited in the publication, it was falsely alleged that Petro Union in their last statement are now saying that if Union Bank and CBN could ‘apologize’ for what happened they will be okay and probably walk away. This must be a fiction of the author’s imagination.

It is obvious that the author needs to be tutored on certain basics. For instance, in the sponsored publication, he states thus – I have always had issues with some decisions that judges take… Mr. Tope needs to be reminded that we live in a country governed by rules and regulations and as a supposed accountant who has lived in London, he ought to know that the unqualified obligation of all is to obey decisions of Court and any dissatisfaction against that decision has to be by way of an appeal in line with the law. The unfortunate publication goes as far as accusing Judges of being infamous with the ability to send the innocent to the gallows and free dangerous menaces to the society, for the love of money. This attitude and sheer desperation exhibited in the publication is really worrisome, condemnable and ought to be investigated. It does not lie in the mouth of the author to castigate the Judges and/or the subsisting Judgment of the Federal High Court in favour of Petro Union which was affirmed by the Court of Appeal and undisturbed by the Supreme Court.

CONCLUSION

We hereby urge the general public to disregard and discountenance the said publication and other similar publications as being fallacious, malicious and self-serving. They say the judiciary is the last hope of the common man and we are indeed hopeful that justice will prevail at last in this matter and the Company will have access to its wrongfully seized foreign capital for its legitimate business.

DATED THIS 26TH DAY OF JULY, 2021

Prince Kingsley Okpala
(Managing Director)
FOR: Petro-Union Oil and Gas Oil Ltd

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  • EDITOR'S CHOICE
  • Jun 01, 2021
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  • Comments Off on GADZAMA LLP ISSUES CAVEAT ON UNION BANK SALE

GADZAMA LLP ISSUES CAVEAT ON UNION BANK SALE

The reported sale of a huge chunk of shares of Union Bank Plc has ran into hot water as a judgement creditor has warned prospective buyers to beware of its claims against the bank.

In a statement made available to CITY LAWYER, J-K Gadzama LLP warned that its client, Petro Union Oil & Gas Company Limited is a beneficiary of a judgement of the Federal High Court which awarded it £2, 159, 221, 318.54 against the bank.

Said the statement: “As Lead Counsel to Petro Union Oil & Gas Company Limited, and acting on the instruction of our Client, we believe it is important for us to put the prospective buyers and the public on notice of the outstanding judgment sum to the tune of £2, 159, 221, 318.54 (Two Billion, One Hundred and Fifty-Nine Million, Two Hundred and Twenty-One Thousand, Three Hundred and Eighteen Pounds Sterling, Fifty-Four Pence) against Union Bank of Nigeria PLC (“the Bank”) as delivered by the Federal High Court sitting in Abuja per Honourable Justice A. Abdu-Kafarati in Suit No. FHC/ABJ/CS/104/2012 wherein the Court, in its judgment of March 11, 2014, amongst other reliefs, held that our Client is entitled to the sum of £2, 159, 221, 318.54 (Two Billion, One Hundred and Fifty-Nine Million, Two Hundred and Twenty-One Thousand, Three Hundred and Eighteen Pounds Sterling, Fifty-Four Pence) and 15% per annum from 2nd June, 1995 until the total sum is released and transferred to our Client.”

The law firm noted that the judgement was not only validated by the Court of Appeal but that the Supreme Court also held an appeal by the bank to be incompetent. It however stated that “there is a pending application by the Bank praying the Court to set aside the said judgment.”

The leading law firm noted that though its client’s attention was drawn to reported plans by Zenith Bank Plc and Access Bank Plc to acquire the banking behemoth, “In view of the above, while we are not in a position to dissuade prospective buyers of Union Bank of Nigeria PLC not to continue with the transaction or advise against the sale of the Bank, we wish to put the public on notice that the judgment sum of £2, 159, 221, 318.54 (Two Billion, One Hundred and Fifty-Nine Million, Two Hundred and Twenty-One Thousand, Three Hundred and Eighteen Pounds Sterling, Fifty-Four Pence) is still outstanding and yet to be paid. Furthermore, the matter is yet to be concluded by the Supreme Court and may go either way.”

The full text of the statement is below.

RE: ACQUISITION OF UNION BANK PLC

The attention of our Client, Petro Union Oil & Gas Company Limited, has been drawn to an online publication by THISDAY Newspaper of May 7, 2021 captioned: Bloomberg: Zenith, Access Banks Express Interest To Acquire Union Bank of Nigeria PLC. Accessed Through Bloomberg: Zenith, Access Banks Express Interest To Acquire Union Bank | Thisdaylive

In the said publication, it was reported thus:

“Two Nigerian lenders – Zenith Bank Plc and Access Bank Plc – are among the list of financial institutions. from Africa and the Middle East that have indicated an interest in the acquisition of Union Bank Plc and other African assets of Atlas Mara Group, a Pan-African banking group.

Bloomberg which disclosed this quoted sources familiar with the matter to have disclosed that Atlas Mara Limited, the London Stock Exchange-listed pan-African banking group started by Mr. Bob Diamond has received a number of approaches for its 49.97 per cent holding in Lagos-based Union Bank of Nigeria.

Zenith Bank Plc and Access Bank Plc are among the suitors that have expressed interest alongside other African rivals such as Morocco’s Attijariwafa Bank, the sources said. THISDAY also confirmed the development from sources in the two tier-1 banks, who also pleaded to remain anonymous.”

As Lead Counsel to Petro Union Oil & Gas Company Limited, and acting on the instruction of our Client, we believe it is important for us to put the prospective buyers and the public on notice of the outstanding judgment sum to the tune of £2, 159, 221, 318.54 (Two Billion, One Hundred and Fifty-Nine Million, Two Hundred and Twenty-One Thousand, Three Hundred and Eighteen Pounds Sterling, Fifty-Four Pence) against Union Bank of Nigeria PLC (“the Bank”) as delivered by the Federal High Court sitting in Abuja per Honourable Justice A. Abdu-Kafarati in Suit No. FHC/ABJ/CS/104/2012 wherein the Court, in its judgment of March 11, 2014, amongst other reliefs, held that our Client is entitled to the sum of £2, 159, 221, 318.54 (Two Billion, One Hundred and Fifty-Nine Million, Two Hundred and Twenty-One Thousand, Three Hundred and Eighteen Pounds Sterling, Fifty-Four Pence) and 15% per annum from 2nd June, 1995 until the total sum is released and transferred to our Client.

The judgment of the Federal High Court was affirmed by the Court of Appeal in Appeal No. CA/A/258/2014 delivered on Tuesday, the 5th day of June, 2018 and the Appeal lodged by the Bank was dismissed. Furthermore, an Appeal to the Supreme Court by the Bank in SC.632/2018 was held to be incompetent by the judgement of the Supreme Court delivered on Monday, December 16, 2019, by Honourable Justice Mary Ukaego Peter-Odili, JSC, although there is a pending application by the Bank praying the Court to set aside the said judgment.

In view of the above, while we are not in a position to dissuade prospective buyers of Union Bank of Nigeria PLC not to continue with the transaction or advise against the sale of the Bank, we wish to put the public on notice that the judgment sum of £2, 159, 221, 318.54 (Two Billion, One Hundred and Fifty-Nine Million, Two Hundred and Twenty-One Thousand, Three Hundred and Eighteen Pounds Sterling, Fifty-Four Pence) is still outstanding and yet to be paid. Furthermore, the matter is yet to be concluded by the Supreme Court and may go either way.

Dated this Tuesday, the day 1st day of June, 2021

PP: J-K Gadzama LLP

____________________________________________________________________________
Joe-Kyari Gadzama, OFR, MFR, SAN, FNIALS, FICMC, DiplCArb, FCIArb, Chartered Arbitrator.

GADZAMA_UBN+

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