(L-R) Barrister Chijioke Orji, MD Alpha Juris; Leo Stan Ekeh, chairman, Zinox Technologies and Chukwuemeka Wogu, minister of labour and productivity at the recent Spirit of True Nigerian Entreprenuership workshop organised by Zinox in Abuja.

THERE are strong indications that Capital Alliance Limited, a private equity firm, may have been slated as the preferred core investor in Union Bank of Nigeria Plc, thereby beating two second generation banks that expressed interest in buying the bank. Investigations reveal that Capital Alliance may have been favoured because the Central Bank of Nigeria (CBN) was inclined to have a foreign bank or an investor with foreign background as core investor in the bank.
BusinessWorld Intelligence can reveal that Capital Alliance may have been technically picked ahead of the official pronouncement whose date the CBN has yet to make public due to the growing opposition by some shareholder groups to the recapitalization format being adopted by the CBN. Few weeks ago, the CBN took a look at the bid interests again but resolved the final word must be heard before the end of the year as the bid is believed to have been largely snubbed by the big foreign banks which have been touted as being keen in the acquisitions. With three major suits at the courts on the issue, foreign interests are said to have developed cold feet. Capital Alliance which was established in 1997 as an equity fund manager seeks to partner with the management team to build a long-term value of business by seeking superior returns for investors. It has been identified as strong partners in various areas in the Nigerian economy since the last ten years. The board of the company is chaired by Richard Kramer, while Okechukwu Enelamah is the chief executive officer. Other members of the board include Chief Ernest Shonekan, Pascal Dozie, Afolabi Oladele and Paul Kokoricha.
This is the fourth attempt by any Nigerian core investor to takeover Union Bank if this exercise is finally announced by the CBN. In 2004, UBA made an effort to buy the bank but failed.  In 2005, Access Bank Plc failed in a hostile bid to acquire Union Bank while other efforts by Zenith Bank in 2005 and 2007 also failed. The reason for this barrage of failures was not unconnected with the non-involvement of the bank’s staff who are major shareholders with about 30 per cent shares of the bank.
Commenting on the development, Boniface Okezie, a leader of a shareholders group indicated that the shareholders have the right to know who the bidders are. “The CBN should try to make he process transparent enough like the oil bloc bids where core investors are made to show some level of exposure and commitment. CBN is encouraging lawlessness by not listening to the position of the majority. Those who appointed Lamido Sanusi as the CBN governor should call him to order”, Okezie emphasized.