Nepalese Forbes-listed billionaire Binod Chaudhary’s CG Corp Global has completed the transaction to acquire the majority stake in Union Bank of Colombo PLC.
The transaction completion for the acquisition was made public by the Colombo Stock Exchange (CSE) today.
Through the acquisition, CG Corp Global will make its maiden foray into the financial services industry in Sri Lanka.
The acquisition of 70.84 per cent shares in UBC is via CG Capital Partners, a private equity company incorporated in Singapore under the umbrella of CG Corp Global.
UBC is among Sri Lanka’s twelve listed banks with a market capitalization of LKR 9.1 billion.
Meanwhile, Union Bank has issued the following statement on the acquisition.
Union Bank has issued a statement referring to the proposed acquisition of Culture Financial Holdings Ltd. (a substantial shareholder of shares in Union Bank) by CG Capital Partners Global Pte. Ltd. that was announced in December 2022. On 24 October 2023, the Board of Directors of Union Bank received formal notification that the transaction had been completed and the Colombo Stock Exchange (CSE) has been notified of the same.
Through its ownership in Culture Financial Holdings, CG Capital Partners Pte Ltd., is now the main shareholder of Union Bank. CG Corp Global (CG) takes pride as one of the leading conglomerates in Asia with over 160 companies and 123 brands in the global market with a strength of more than 15, 000 employees. It is a major player in many industries such as banking and finance, hospitality, cement, hydropower, telecommunication, and education. The company is a major player in the financial services sector in Nepal and Nabil Bank where it is the largest shareholder and is listed as the largest private bank in the Nepalese Stock Exchange.
This is not the first time CG has set its sights on Sri Lanka. It holds major shares in several high-end properties, luxury hotels and resorts across the country and is further expanding its investments towards the financial services sector as well. This comes as 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. This is a major milestone for Union Bank to have such an international powerhouse as the main shareholder.
Dr Binod K. Choudhary, Chairman of CG Corp Global said, “This is a major investment towards the financial service sector in Sri Lanka and to Union Bank. 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. The acquisition and transition of Nabil Bank to become Nepal’s largest bank is a fine example. 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. It is great to be associated with this well-reputed and well capitalised bank in Sri Lanka. I believe, together much can be done as we move forward.”
lndrajit Wickramasinghe, Chief Executive Officer of Union Bank said, “Union Bank has established itself as one of the leading and reliable banks in the country. 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. 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”.