Meet Dutch/Nigerian Billionaire, Cornelius Vink, who Acquired Union Bank in N191Bn Deal

Editor/

Mr. Cornelius G. Vink (MFR), a Nigerian/Dutch billionaire businessman, who owns Tropical General Investment (TGI) Group and Titan Trust Bank, a subsidiary of his TGI group, on Monday last week, paid a total sum of N191 billion naira for the acquisition of Union Bank.

The deal was concluded on the floor of the Nigerian Exchange (NGX) on Monday with the purchase of 27.34 million units of Union Bank shares at N7.00 each in an off-market transaction. The share price of Union Bank closed flat yesterday (June 4) at N6.25.

In December 2021, it was reported that the two-year-old bank (Titan commenced operations in October 2019) was planning to buy an 89.39 percent stake in the 104-year-old Union Bank.

Union Bank Plc had on Thursday, announced the completion of core investors’ sale of a majority shareholding to Titan Trust Bank Limited.

Union Bank also announced board changes that resulted from the resignation and subsequent retirement of the Directors from the Board of Union Bank and the appointment of new directors.

According to a statement signed by bank’s Somuyiwa Sonubi, Company Secretary the bank explained that “Following Union Bank of Nigeria Plc’s notification in December 2021 of the execution of a Share Sale and Purchase Agreement (SSPA) between the Bank’s majority shareholders – Union Global Partners Limited, Atlas Mara Limited, et al. – and Titan Trust Bank Limited (TTB), and the subsequent receipt of all necessary regulatory approvals, Union Bank hereby notifies Nigerian Exchange Limited (NGX), the Securities & Exchange Commission and members of the public of the completion of the transaction under the SSPA, which effectively transfers 93.41% of Union Bank’s issued share capital to TTB.

“Consequently, in compliance with NGX, Rulebook and the Amendments to the Listing Rules, Union Bank hereby notifies NGX, our esteemed stakeholders, and the investing public of the following: ‘Union Bank hereby notifies NGX that with the completion of the transaction, TGI Group, parent of TTB, now becomes the majority shareholder and core investor in Union Bank.

“Union Bank hereby notifies NGX of the completion of the divestment of the Bank’s entire shareholding interest (direct and indirect) in its subsidiary, Union Bank (UK) Plc (“UBUK”), to all the shareholders in the Bank’s records as of 4th March 2022, pro-rata to their existing shareholding interests in the Bank. Consequently, UBUK is not included in the transaction with Titan Trust Bank”.

The deal will go down as one of the most remarkable acquisitions in the Nigerian Banking space after STB acquired UBA in the landmark 2005 deal.

With the complete payment for the Union Bank shares, Vink is now the majority owner of Union Bank through his Titan Trust Bank.

Vink, a Dutch Nigerian, arrived in Lagos, Nigeria from his country, the Netherlands, in the ’70s. He later incorporated his company, TGI Group in 1980, and their first product was the importation of Caprison juice into Nigeria in 1982, which was a big hit.

TGI Group has grown over the years into a global conglomerate with the majority of its investments based in emerging markets.

Across markets (globally), TGI Group owns over a hundred leading brands in fast-moving consumer goods, agricultural inputs, industrial chemicals, home care products, and pharmaceuticals.

Vink later started CHI Limited, the makers of the popular Chivita products. TGI eventually sold the company to Coca-Cola in 2019 for $1 billion.

Vink’s TGI also owns WACOT Rice Mill located in Kebbi State, which is said to be the largest parboiled rice mill in Africa.

TGI Group’s CORMART is one of the foremost and largest manufacturers of styrene-acrylic in Nigeria—a key raw material for the paint industry.

CHI Farms is one of the largest suppliers of “day-old chicks” in Nigeria.

CHI Pharmaceuticals is the youngest pharmaceutical company in West Africa to obtain the World Health Organisation (WHO)’s Good Manufacturing Practice (GMP) certification. Only eight pharmaceutical companies have the certification in the region.

FLUDOR Benin has the largest cashew processing plant in the Republic of Benin, employing over 1000 women, who make up 85% of the entire workforce.

Titan Trust Bank was established just three years ago by TGI Group, which owns over 85% of the bank.

With the N191 billion acquisition of Union Bank by Titan Trust Bank, Vink, just made a huge statement of intent to announce the arrival of his global business, TGI, in Nigeria’s financial sector.

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