In its new drive to multiply funds at its disposal, the Trade Union Congress (TUC) at the weekend disclosed its intention to invest about N80 billion in Unity Bank Plc.
With this disclosure, TUC said it intends to acquire majority shares in the financial institution.
Giving a breakdown of the investment the congress said it will within the next three years invest a total of N80 billion in the bank to acquire 57 percent equity holding.
According to the President of TUC Bobboi Kagaima, this is one of the many portfolios the congress is taking, 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 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 Bank of Industry.
Signing the deal at Unity Bank corporate headquarters, Lagos, Kaigama said TUC was propelled to invest in the banking sector, not only to re-energise the economy, but to give its members and Nigerian workers financial leverage in a struggling economy.
According to Kaigama, 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.
Speaking during the signing ceremony, Chairman of the bank, Thomas Etuh, described the partnership as positive development.
Etuh said that the deal is widely supported because it comes with dual advantage of Black Tritium not only being an investor, but also with value addition to Unity Bank 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,” Etuh said.
The transaction was spearheaded by Black Tritium Capital Management Limited, an equity and investment fund manager, acting as consultants to TUC. It is believed to have resulted in positive outlook for Unity Bank, as its shares value in the market has been said to appreciated by 6-7 per cent.
-Emmanuel ikechukwu
