Union Bank Responds On The Access Bank – Atlas Mara Rumoured Deal Discussion: Ignore the Rumour

Union Bank Responds On The Access Bank – Atlas Mara Rumoured Deal Discussion: Ignore the Rumour

Union Bank Plc has updated me after the piece on a rumoured deal between Access Bank and Atlas Mara, Union Bank’s majority shareholder. The bank has clearly noted that it was all rumour and nothing there. I have posted the full feedback. Please take note accordingly. Yet, I will not delete the piece since the source is still there, and most importantly, I noted that it was all rumour, but quickly moved to the perspectives I wanted to share. I do not break news, I only analyze broken ones!

 I have been riding the horse since my first paycheck when after receiving my first salary in Diamond Bank at Adeola Hopewell Street, Victoria Island Lagos, I ran across the street to open a savings account with Union Bank. Till today,, the bank continues to keep its words. So, the horse lives!

From Union Bank

Thank you for your keen and thoughtful analysis of various topical issues pertaining to the financial sector, and the fresh perspective you bring to these discussions. We have come to regard you as a well-respected voice in our industry and beyond.

Your objective, unbiased stance is the reason we are reaching out to provide some clarity concerning your recent article titled ,‘Besides the Rumours of Access Bank Acquiring Union Bank Nigeria’.

We are aware of recent rumours resulting from an article by a blogger who regurgitated an old, misleading news article which has since been debunked.

Please read our statement to the Nigerian Stock Exchange debunking the rumour ( http://www.nse.com.ng/Financial_NewsDocs/32241_UNION_BANK_OF_NIGERIA_PLC%20RESPONSE_TO_ONLINE_PUBLICATI.pdf ) , and Atlas Mara’s statement addressing this issue here ( https://otp.tools.investis.com/clients/uk/atlas_mara1/rns/regulatory-story.aspx?cid=744&newsid=1446833 )

We are sure you will agree that editorial articles/analyses should be based on facts, not rumours and speculations, and as such we hope that you consider updating your article, based on the factual statements referenced above.

Please do not hesitate to contact me should you have questions or require further clarification.

Thank you very much for your time and attention.

Kind regards,

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3 thoughts on “Union Bank Responds On The Access Bank – Atlas Mara Rumoured Deal Discussion: Ignore the Rumour

  1. For donkey years, unfortunately and disappointingly, too, shareholders of UBN Plc, have lost every hope of the bank’s sustainability and profitabilty, to impact on their lives positively, by way of dividend payment, and, the like of it. Union Bank Plc shares are the worst enemies of shareholders. And the “worstest” of the worst is only pending. UBN Plc business slogan is a clear “miscarriage of purpose and blatant deceit”, blared from time, to time, again. The bank needs oxygen 24/7, yet, has refused to draw the last breathe. It serves only the interest of retirees as their drawing vault, and nothing more, or less. It has the “badest” banking management ever! In plain language, it is a good for nothing bank, I’m sorry.

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  2. Abel Emordi Rosnovski · Edit

    UNION BANK SHOULD ACTUALLY BE TAKEN OVER TO UNLOCK VALUE
    Hi Ndubisi, in your Union Bank piece, I read and noted with a mischievous smile on my face the fact that you were actually working with a bank and yet ran to go bank your money in another bank. Now I am bursting out laughing..??. Employees should actually have more faith in their Employers and if not, then they should just resign! If I were your boss and found out, may actually consider firing you for that act…
    Anyways, my comment relates to something quite different from the rumours of Access Bank buying or not buying Union Bank from Atlas Mara. Although if they did, it would be a good thing for the Nigerian banking industry. This is a season where we should actually be seeing a lot of mergers and acquisitions in not just the banking industry but in the Nigerian corporate landscape to have much more stronger banks and companies that can really compete beyond Nigeria effectively.
    SHARE BUY BACKS IN NIGERIA
    The real object of my comments although that is not this your current piece dealt with it.
    We always seem to do things in reverse in Nigeria and I am talking about share buy backs. It was very disappointing when Dangote, a man I love with all my heart, decided to execute his share buy back by the close of 2020 when the shares where already high relatively. I am certain that the shares had not crossed ?160 – ?170 region when all approvals were in place and yet they started executing the buy back mandate only when it hit above ?200. I know because I was a Dangote Cement shareholder at the time and had sold off at the ?180+ region because I believed I had put myself in the shoes of the managers and in those shoes would call off the buy back as the Aprovals for the Buy Back programme left it at the sole discretion of the Board/company to buy back or not to buy back depending on the market situation or circumstances. I was more than surprised they started buying back at the time they did.
    Therefore one could conclude that creating further high price was the sole objective rather than inherent or internal and real value for all shareholders who would be left after the buy back, and you can see that with the turn in the general NSE, the company is somewhat paying the price.
    Now, in the current market, with Fund Managers in their herd mentality and never able to think for themselves heading to the T-bill market to get 5 to 6% per annum; this is the time that excellent companies with excellent values,
    with diminished prices should be actively and hurriedly putting in place and executing buy backs! But No. What you may find is the opposite. When the shares start going up as surely they will with some excellent companies, showing dividend yields out-pacing 1yr till bills and rivalling 10year bond rates as at date 16 March 2021. So, just when the share prices in future become more expensive, don’t be surprised that that is when Nigerian corporate managers will begin to think of buy backs, the exact opposite of the right action and execution plan for their companies.

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