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Partners Genting Berhad, Shorecap:
Union Bank to go for IPO
Sanjeevi Jayasuriya
The Union Bank entered in to a strategic partnership with Genting
Berhad, the Malaysian conglomerate in leisure and hospitality and USA
based fund Shorecap to raise Rs two billion additional equity capital to
fulfill the banks’ five-year strategic plan.
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Union Bank Chief Operating Officer Nilanth De Silva, Union Bank
Director Alex Lovell, Union Bank Chairman Ajita De Zoysa,
Genting Berhard President and Chief Operating Officer Tan Kong
Han and Union Bank Director/Consultant Anil Amarasuriya at the
signing of the partnership agreement. Picture by Saliya
Rupasinghe |
The bank’s strategic plan is in line to achieve rapid progress in
future and to become the preferred partner in SME sector by creating a
niche market. This would lead Union Bank to be the financial power
house, its Consultant/Director Anil Amarasuriya said.
The capital raised would surpass the Central Bank’s minimum capital
requirement of Rs one billion. Genting will hold 20 percent shares while
Shorecap will secure 13 percent shareholding in Union Bank.
Union bank will go for an IPO shortly and will be listed in the stock
exchange in the end this year or early 2011.
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Genting Group President meets
Minister Rajapaksa |
Malaysia’s
Genting Group President and Chief Operating Officer Tan Kong Han
met Economic Development Minister Basil Rajapaksa at the
Presidential Secretariet on Friday. Tan briefed the Minister on
a number of issues, in particular, the avenues available for
Malaysian investments in Sri Lanka.
Genting Berhard, the Malaysian conglomerate engaged in leisure
and hospitality, is one of Malaysia’s leading multinational
corporations and Asia’s best-managed companies. The group is
involved in leisure and hospitality, power generation, oil palm
plantations, property development, biotechnology and oil and gas
related activities.
Founded in 1965, the Genting Group is the collective name for
Genting Berhard, an investment holding and management company
and its’ subsidiaries. It comprises four listed entities with a
combined market capitalization of about US $ 22 billion.
The group has over 35,000 employees, 4500 hectares of prime land
and about 133,000 hectares of plantation land. In 2009, the
group recorded revenue of US $ 2.8 billion and Profit Before Tax
of US $ 800 million. |
The bank’s expansion plan includes opening of ten branches and three
extension offices to add to its existing 19 branches.
“This investment demonstrates the solidity and strength of Union
Bank. A significant factor enabling the bank to raise new capital is the
safe and viable environment for investment created by the progressive
financial and economic policies being adopted by the Government”, Union
Bank Chairman Ajita de Zoysa said. “Sri Lanka is a leading economy in
Asia with sound economic policies.
The banking sector is the first indicator in an economic development
and we are happy to have a partner in Union Bank, President and Chief
Operating Officer Genting Berhad Tan Kong Han said.
“We selected Union Bank as it has a decent track record and working
environment and felt that it is a good fit”, he said.
Union Bank reached new heights in 2009, recording an impressive
growth after posting a profitability of Rs 62.1 million. The
profitability recorded in the previous year was Rs 23.1 million.
The bank’s deposit base grew from Rs 10.4 billion to Rs 12 billion,
while the asset base saw an upward movement from 12.5 billion to Rs 14.1
billion. |
