Union Bank acquisition: Lawyer asks court to nullify CBN’s approval of Titan Trust Bank
July 11,2022
team of lawyers led by Mr A.M Makinde, SAN for Dr. Charles Mekwunye, SAN, has filed a motion before the Federal High Court in Lagos seeking an order to nullify the Central Bank of Nigeria (CBN), approval of the acquisition of Union Bank by Titan Trust Bank
Dr Mekwunye had earlier dragged Union Global Partners Ltd (1st defendant) and Atlas Mara Limited (2nd defendant ) to the court over the sale of their majority shares in Union Bank (4th defendant) to Titan Trust Bank (3rd defendant)
In the fresh suit against acquisition of the bank, Dr. Mekwunye, who is also a shareholder in Union Bank, contended that the sale of Union Bank to Titan Trust Bank by Union Global Partners and Atlas Mara Ltd did not follow extant laws of Nigeria regulating such transactions.
He also contended that Titan Trust Bank which was granted banking license two years ago with two branches has not broken even and does not have the financial capacity to acquire Union Bank.
According to court processes files for Dr. Mekwunye, the sales of the combined shares of Union Global Partners and Atlas Mara Ltd, in Union Bank was done by private treaty instead of being traded on the floor of the Nigerian Stock Exchange as require by law thereby making the transaction invalid and unlawful
The CBN was joined in the suit number FHC/L/CS/674/2022 as co-defendant and also served with the court processes and interluctory injunction seeking stay of all actions on the transaction pending the determination of the suit. But while the suit was still pending before the court, the CBN last month announced the official approval of Union Bank sales to Titan Trust Bank
