Foreign investor concludes due diligence in Union Bank
TPG, a US-based global private investment firm with a US$ 70 billion balance sheet, has finalised its due diligence pertaining to their 'indication of interest' in the Union Bank, sources close to the deal said.
The bank in an earlier announcement said that the indication of interest is not an offer of whatever nature relating to an investment in Union Bank and it was stated that the investment will be subject to agreement being reached on the terms and conditions between the two parties. The sources added that now that the due diligence is concluded the two parties will be sitting down for further discussions pertaining to this deal.
The bank which restructured its finance arm UB Finance said that presently it’s in the process of rectifying the finance company’s share register in a bid to streamline its shareholdings and has made an application to court with fresh and updated information on its share registry.
Union Bank, which has 77 per cent in UB Finance isn't planning to sell the finance company. "We need to go public with this company as per the Central Bank guidelines in the short term. There's no point in selling an entity which hasn't matured. Even when selling we want to be sure that our long-term plans are carried out,” an official said, adding that UB Finance has come a long way in terms of operational and risk management control and business development.