Foreign and local investors may buy stake in Nigeria’s Unity Bank Plc, which is currently seeking to expand its share of the country’s lucrative retail banking sector, investigation by our correspondent has revealed.
The United Kingdom-based Development Partners International, Morocco-based Bank of Morocco and Lagos-based Verod Capital Management are among the top contenders for a stake in the bank, according to sources close to the bank.
It was gathered that while DPI had indicated interest to commit $200m into Unity Bank, Verod Capital was offering to put $160m into the bank.
According to authoritative sources, DPI, which currently manages a $400m private investment fund, is in the process of raising a further $500m in investment funds.
The London-based firm has investment portfolio cutting across several sectors in Africa.
Analysts said the company’s entry into the nation’s banking industry through Unity Bank might redefine the retail market segment and hike the stakes in terms of competition.
DPI had recently acquired 67 per cent stake in one of GT Bank’s former subsidiaries, Guaranty Trust Assurance, which is now Nigeria’s third largest insurance companies. The subsidiary has changed its corporate identity to Mansard Insurance.
Verod Capital Management, which is said to be willing to commit $160m, has investment portfolio ranging from financial services, through consumer products and agribusiness to real estate.
When contacted, Unity Bank officials declined to comment on the transaction, saying the bank would make its position known later.
It was learnt that the Bank of Morocco, which is said to be discreet talks with the bank, might also acquire about 50 per cent stake in the bank.
The bank, which has interest in investment and mortgage banking, brokerage, leasing, and assets management might be well placed to snatch a 50 per cent stake in Unity Bank.
The Moroccan bank is planning to position itself as a major player in the nation’s under-tapped retail banking segment. BoM has 14 commercial banks in fourteen African countries, it was learnt.
Analysts believe new capital injection in Unity Bank might stimulate activity in the sector, which is believed to have been weighed down by slow economic activities and a flurry of regulatory pronouncements in the last six months.
The development is coming on the heels of the departure of Alhaji Ado Yakubu Wanka from the company.
His voluntary retirement was announced by the Nigerian Stock Exchange two weeks ago.
It was learnt that Unity Bank’s Executive Director, Enterprise Risk Management, Mr. Rislanudeen Muhammad, had taken over the reins of the bank as its acting managing director.
Source: Punch (by Oyetunji Abioye)
