TUC partners Unity Bank on wealth creation, stakes N80b
In its quest to multiply funds at its disposal, the Trade Union Congress (TUC) at the weekend disclosed its intention to invest about N80 billion in Unity Bank Plc.
With this development, TUC said it intends to acquire majority shares in the financial institution.Giving a breakdown of the investment the congress said it will within the next three years invest a total of N80 billion in the bank to acquire 57 percent equity holding.
According to the President of TUC Bobboi Kagaima, this is one of the many portfolios the congress is taking, in its drive to cut into some critical sectors of the nation’s economy, using “The $ 1 billion TUC Economy” as the vehicle.
Other sectors that the union is considering in the near future are agriculture and real estate. Some four years ago, the TUC veered into the transportation sector, with the acquisition of about 100 high capacity buses to run in Lagos with a loan secured from Bank of Industry.
Signing the deal at Unity Bank corporate headquarters, Lagos, Kaigama said TUC was propelled to invest in the banking sector, not only to re-energise the economy, but to give its members and Nigerian workers financial leverage in a struggling economy.
He said the N80 billion would come from workers’ contributions and support from development partners, and the sum would be fully retired in about three years to enable TUC acquire majority share in the bank.
Speaking during the signing ceremony, Chairman of the bank, Thomas Etuh, described the partnership as positive development.According to him, the deal is widely supported because it comes with dual advantage of Black Tritium not only being an investor, but also with value addition to Unity Bank business, when considered against the background of the spread of membership of TUC nationwide.
“On our part, we have always been known to be a pan Nigerian Bank-occupying the 7th position, in terms of branch network, meaning that we have the tentacles to service TUC members across the nation,” Etuh said.
The Chief Finance Officer of the bank, Ebenezer Kolawole said the partnership will build the next generation of financial powerhouse in Africa, adding that, the bank has fully transformed to do business and meet customers’ needs through innovative product designs and technology among others.
“This strategic alliance will expand Unity Bank’s business scope, strengthen its capital base and support the bank’s retail strategy whilst meeting the investment objectives of Black Trituium”, Kolawole said.
The transaction which was driven by Black Tritium Capital Management Limited, an equity and investment fund manager, acting as consultants to TUC, has resulted in positive outlook for Unity Bank, as its shares value in the market has been said to appreciated by 6-7 per cent.