Union Banks attracts $750m investment from African Capital Alliance

After a long drawn negotiation with prospective core investors, Union Bank of Nigeria PLC has finally settled for African Capital Alliance Consortium With the signing a memorandum of Agreement (MoA) Monday.

Although details of the MoU were not made public as at press time, it was gathered that the agreement empowers African Capital Alliance Consortium (ACA Consortium ) to invest $750 million in the Union Bank. This is sequel to the earlier announcement that the bank had entered into negotiation with a core investor.

The MOA will in the main, provide a framework for the process by which the bank will be recapitalized.

However, the process would be subject to the approval of stakeholders as the bank�s shareholders, the Central Bank of Nigeria, the Securities and Exchange Commission, The Nigerian Stock Exchange, and the Federal High Court.

The ACA Consortium is a group of Institutional investors led by African Capital Alliance (ACA), a leading independent private equity firm investing in West Africa, principally in Nigeria and Gulf of Guinea.

ACA Consortium was founded in 1997 with a mission to build Africa�s Premier private equity private investment firm by mobilizing capital , technology and management resources from local and International sources to unlock Africa�s private sector Potential.

The ACA Consortium which will invest as Union Global Partners limited , consists of ACA B-Holding Limited, (comprising an ACA Managed fund, FMO Netherlands, an International development financial institution and other co-investors), TRG Management LLP, The Keffi GroupVIII LLC ( comprising the Keffi group and other United States based institutional investors ), ABC Holdings limited (bank of Botswana) and the Discovery Group .

The bank�s recapitalisation by the ACA Consortium will enhance its liquidity, corporate governance and Capital adequacy and restore its strong competitive position.

Source : Daily Champion