ECONOMYNEXT – Sri Lanka’s Union Bank said CG Capital Partners Pte Ltd, a unit of Nepali businessman Binod Choudhary’s CG group is now its ultimate controlling shareholder following the indirect acquisition of its main stockholder.
Singapore based CG Capital Partners Global Pte. Ltd, had acquired Culture Financial Holdings Ltd from TPG Asia VI SF Pte Ltd after approval was given by Sri Lanka’s Finance Minister last month. Culture Financial Holding held 70 percent of Union Bank as of June 30.
The Board of Directors was formally informed that the transactions had been completed on October 24, the bank said.
“This is a major investment towards the financial service sector in Sri Lanka and to Union Bank,” Binod K. Choudhary, Chairman of CG Corp Global said in a statement.
“The Bank has had a strong track record and has further potential to grow and do greater things to achieve more milestones in the banking sector.
“We are taking a strategic growth approach to make Union Bank to be amongst the top private commercial banks in Sri Lanka. This growth expansion could see further consolidations and acquisitions.”
“Based on CG’s core competencies and expertise, we want to also look at the possibility of Union Bank’s expansion to emerging and frontier markets such as Africa, Nepal, and Bhutan.”
CG Corp Global (CG) has over 160 companies and 123 brands in the global market with the strength of more than 15, 000 employees with interests in banking and finance, hospitality, cement, hydropower, telecommunication, and education.
It is the largest shareholder of Nabil Bank of Nepal, which is the largest listed private bank.
Choudary group has stakes in several high-end properties, luxury hotels and resorts in Sri Lanka.
“The partnership with CG Capital Partners Pte Ltd., will be an immense boost to the bank’s next stage of growth, its staff, and its customers as it progresses to take on new opportunities,” lndrajit Wickramasinghe, Chief Executive Officer of Union Bank said.
“Being amongst the banks with a highest Capital Adequacy Ratio, this partnership reaffirms the bank’s financial stability and further supports its future strategic expansion and will act as a catalyst for the bank’s growth journey.”
CG groups investment is a “reaffirmation of its commitment to Sri Lanka, by being a source of support and strength during these challenging and transitioning times, whilst reiterating the foreign investor confidence in Sri Lanka,” the Union Bank said.
Union Bank was set up 28 years ago and was listed in the Colombo Stock Exchange in 2011. It has diversified into financial services with National Asset Management Limited and UB Finance. (Colombo/Oct25/2023)