Union Bank of Colombo PLC (UBC) held its extraordinary general meeting on 17th September 2014, facilitating shareholder approval for the conclusion of its landmark investment agreement of US$ 117Mn with TPG, a leading global investment firm. Mr. Alex Lovell, Chairman of Union Bank stated that the Bank received an overwhelming endorsement from shareholders for the TPG investment. As per the circular to shareholders issued by UBC, the resolutions passed in summery included (1) the issue of 742,156,249 ordinary voting shares of the Company for LKR 15.30 each to Culture Financial Holdings Ltd (CFHL) by way of a private placement. (2) The issue of 218,281,250 warrants to CFHL for LKR 0.30 per warrant conferring the right to subscribe to one new ordinary voting share per Warrant at any time within a period of six (6) Years at a consideration of Sri Lankan Rupees sixteen (LKR 16.00) per ordinary voting share.. (3). 742,156,249 ordinary voting shares to be issued to CFHL by way of the private placement without offering such ordinary voting shares to the holders of the existing ordinary voting shares of the Company. (4). Articles of Association of the Company be amended to reflect provisions of the investment agreement.
The investment, one of the largest foreign direct investments to Sri Lanka in the recent years, now places Union Bank amongst the top five private Banks in equity and dominates in the second position in stated capital amongst all Banks in Sri Lanka. It further aligns UBC to the Central Bank road map on consolidation in the banking and non -bank financial institution sectors. Marking this milestone investment to the financial services industry in Sri Lanka and to Union Bank in particular, Mr. David Bonderman, Founding Partner of TPG is currently in Sri Lanka.
Mr. Lovell, further stated that the investment agreement would leverage highlighted benefits to Union Bank, its subsidiaries and the shareholders. It would ensure strong capital support with The Central Bank Road Map anticipating the increase of capital in licensed commercial banks to a minimum of LKR 10 billion in the next two years. www.island.lk
The investment, one of the largest foreign direct investments to Sri Lanka in the recent years, now places Union Bank amongst the top five private Banks in equity and dominates in the second position in stated capital amongst all Banks in Sri Lanka. It further aligns UBC to the Central Bank road map on consolidation in the banking and non -bank financial institution sectors. Marking this milestone investment to the financial services industry in Sri Lanka and to Union Bank in particular, Mr. David Bonderman, Founding Partner of TPG is currently in Sri Lanka.
Mr. Lovell, further stated that the investment agreement would leverage highlighted benefits to Union Bank, its subsidiaries and the shareholders. It would ensure strong capital support with The Central Bank Road Map anticipating the increase of capital in licensed commercial banks to a minimum of LKR 10 billion in the next two years. www.island.lk
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