Standard Chartered acquires controlling shareholding of Union Bank

LONDON: Standard Chartered Bank (Pakistan) Limited ("SCBP") has entered into agreements to acquire an 80.86 per cent interest in Union Bank Limited ("Union Bank") for a cash consideration of USD 413 million (the "Acquisition").

The Acquisition is unconditional but before it can be completed SCBP is obliged pursuant to Pakistan law, to make a mandatory public offer (the "Tender Offer") for the remaining shares of Union Bank.

The tender offer is expected to commence on or about August 12 and is expected to close on or about September 1. The Acquisition is expected to complete shortly after closing.

The acquisition of Union Bank will make Standard Chartered the sixth largest bank in Pakistan by market share of assets and will further extend Standard Chartered's business in a high growth market. Standard Chartered currently has a network of 46 branches in 10 cities.

The Pakistan banking sector has low penetration rates and a growing profit pool that has doubled between 2004 and 2005.

Union Bank provides Standard Chartered with a significant opportunity for growth in both Consumer and Wholesale Banking through product innovation and by leveraging Standard Chartered's international network.

Union Bank has demonstrated an impressive period of growth since its establishment in 1991, particularly in the Retail and Small and Medium Enterprise banking market, where it now holds strong market shares in mortgages, credit cards, personal and auto loans.