US-based investment giant TPG reaffirms long-term commitment to Union Bank

Union Bank’s major shareholder Culture Financial Holdings Ltd, through which US- based investment banker TPG which holds 70 per cent of bank shares, has informed that they will not accept the offer to repurchase their shares, thus affirming its continued commitment towards the future progress of the bank.

Union Bank announced a share repurchase offer which opened on June 27 and is scheduled to close on July 11.

In a news release, the bank said the share repurchase of upto a maximum of 7,851,844 ordinary shares from its shareholders at the price of Rs. 15 per share, amounting to a maximum distribution of Rs.117,777,660 was approved by shareholders at an extraordinary general meeting convened by the bank on June 11.

“The offer is made by the bank with the intention of improving the price of the bank’s shares to reflect its true underlying value and consequently improve the returns to the shareholders. As per applicable law, the said offer is made to all shareholders of the bank, on a pro rat a b a s i s. Accordingly, the offer will be made on the basis of one ordinary share for every 139 ordinary shares held by each shareholder,” it said.

Union Bank said it has been making steady progress as a fully- fledged commercial bank over the years, having embarked on an accelerated growth strategy since the acqusition by the US investment giant TPG in 2014.

It is currently one of the fastest growing banks in Sri Lanka which has been doubling its Profit (PBT) over the years and marked a milestone achievement with its PBT crossing Rs. 1 billion by the end of year 2018.