Fidelity Bank Heeds Shareholders Warning To Acquire UBUK – PSAN Chairman
The National Chairman of the Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, has said that Fidelity Bank Plc heeded the warning of shareholders before the bank considered acquiring any bank.
He expressed optimism that if the deal sailed through it would be a welcomed development for the bank and shareholders.
InsideBusiness had on Tuesday reported on the plans by Fidelity Bank to acquire a 100 per cent stake in UBUK.
The bank had in a notification to the investing public disclosed that it had entered into a binding agreement to acquire UBUK of which the Central Bank of Nigeria has given approval.
In a chat with our correspondent, Okezie stressed that Fidelity Bank never ventured to acquire any Nigerian bank since mergers and acquisitions became the in-thing in the country’s banking system.
This is because shareholders had warned the bank’s board and management not to do so before now, he explained.
“The bank listens to us (the shareholders) that is what keeps them going as a strong institution. If they ignored that useful advice and went ahead to acquire any bank, honestly they would have gone under.
“But, today, the bank is a household name in the area of deploying technology in serving their customers, financing small scale industry and leading a major role in financing the real sector,” the PSAN chairman said.
While commending Fidelity Bank for the steps being taken to acquire UBUK, he said the transaction when sealed would at least afford the bank the status to own a bank of its own in the UK.
Okezie maintained that considering the team and customers the bank has across the board, they could access Fidelity Bank in the UK. “I strongly believe that if the deal goes through, no doubt, Fidelity Bank will perform credibly well in terms of running efficient banking in the UK, and in posting profits.
“The bank on its own has come of age that they are now in a position to have a branch in the UK, not using other banks as their bank in the UK instead of theirs. Good one, I believe if Union Bank UK will be a viable option to Fidelity Bank to establish its presence in the UK market to serve many of their customers doing importation,” he added.
UBN had since January 28, 2020, informed the investing public of its plans to enter into a share sale and purchase agreement to divest a 100 per cent equity stake in UBUK. But when Titan Trust Bank (TTB) acquired a majority share in UBN, the ownership transfer was said to have excluded UBUK, its subsidiary.
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