TUC concludes majority take with N80bn investment in Unity Bank

The Trade Union Congress (TUC), one of Nigeria’s two labour centres, has perfected investment transactions with Unity Bank plc, to enable it take up majority shareholding in the bank.

The transaction, 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 appreciated by 6-7 percent.

The labour centre within the next three years will invest a total of N80 billion in the bank to acquire 57 percent equity shareholding.  This investment, according to Bobboi Kagaima, president of the TUC, is one of the many portfolios the congress is looking at 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 labour 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 the Bank of Industry.

Kagaima told BusinessDay, Thursday, at the Unity Bank corporate headquarters, Lagos, where interested parties met to give an insight into the deal, that the labour centre was propelled to invest in the banking sector, to re-energise the economy and also 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.

Thomas Etuh, chairman of Unity Bank, who described the partnership as a positive development, said it was widely supported because it came with dual advantage of Black Tritium  being an investor and with value addition to Unity Bank’s 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,” said Etuh.

Ebenezer Kolawole, chief finance officer of the bank said the partnership would build the next generation of financial powerhouse in Africa. He added 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 Tritium,” said Kolawole.

BusinessDay