Union Bank of Nigeria Plc is expanding its financial portfolio with the acquisition of 20 per cent equity in a Ghanaian firm, Home Finance Company (HFC) and the upgrading of its London branch to subsidiary status.
The recent acquisition of the HFC equity brings Union Bank's total equity investment in the company to 32.4 per cent with Union Home Savings and Loans Limited holding 12.4 per cent.
The Bank's in-house journal, THE STALLION reports that Home Finance Company will now function as a full commercial bank, but its functions will be fashioned after Union Bank's concept in financial intermediation.
HFC, a highly rated financial house in Ghana, was in the business of mortgage financing.
The firm is expected to take on a new name after approval by the appropriate authorities in Ghana.
THE STALLION also reports that the Central Bank of Nigeria has approved request to upgrade the London branch, it will now operate as a full-fledged bank when it is incorporated in the United Kingdom with the initial authoritied share capital of 10 million Pound.
The share holding structure, according to THE STALLION, consists of Union Bank-60 per cent, Union Merchant Bank Limited, 9 per cent, Union Homes Savings and Loans Limited -9 per cent, William Street Trustees Limited 7 per cent, Union Assurance Company Limited 5 per cent and British Citizens and individuals.
The new subsidiary will now serve as a correspondent bank to Union Bank, its parent company, as well as other local banks in Nigeria and other international banks worldwide.
The Central Bank of Nigeria further approved the establishment of Union Registrars Limited, a wholly owned subsidiary of Union Bank with an authorised share capital of N42 million at N1.00 per ordinary share fully paid up.
