Union Bank chairman Ajita De Zoysa said the acquisition is part of Union Bank’s diversification and expansion plan to increase focus and growth in the Small and Medium Enterprises sector.
Branching Out
Nov 01, 2011 (LBO) - Union Bank of Colombo (UBC) and foreign investment fund ShoreCap II have completed the acquisition of Sri Lanka's The Finance and Guarantee Company (TF&G). TF&G's deposit base is over three billion rupees with over half of the company’s deposits being converted to non-voting shares with the consent of depositors as part of the revamp, he said. Union Bank invested 600 million rupees for an 81.27 percent stake and its strategic partner ShoreCap, an international foreign investment fund, 550 million to acquire the rest of the finance firm and revive its business, a statement said.