TPG to Buy a Majority Stake in Union Bank of Colombo for US$117 Million (Asia)
Source: Union Bank of Colombo
Global private investment firm TPG has entered into an agreement to invest approximately US$117 million in Sri Lanka-based commercial bank Union Bank of Colombo (UBC) through a combination of primary and secondary shares. TPG will acquire up to 70 percent of UBC’s issued share capital, as well as warrants that would increase TPG’s stake to 75 percent if exercised within six years. The transaction will strengthen the tier-one capital of UBC and enable it to meet the Central Bank of Sri Lanka’s minimum capital requirement of LKR10 billion (approximately US$77 million) that comes into effect in 2016. The deal is subject to shareholder and regulatory approvals.