As announced to the CSE by Union Bank, its major shareholder Culture Financial Holdings Limited, through which TPG, the US based investment giant, holds 70% of Union Bank shares, has informed the Bank that they will not accept the offer to repurchase a part of their shares.
A spokesman for the Bank that this affirms the investment firm’s continued commitment towards the future progress of the Bank.
Union Bank announced a share repurchase offer which opened on June 27 and is due to close on July 11.
The share repurchase of up to a maximum of 7,851,844 ordinary shares from its shareholders at Rs. 15 per share, amounting to a maximum distribution of Rs. 117,777,660 was approved by shareholders at an extraordinary general meeting convened by the Bank on June 11.
The offer has been made by the Bank to improve the price of the Bank’s shares to reflect its true underlying value and consequently improve returns to the shareholders.
As per applicable law, the said offer has been made to all shareholders of the Bank, on a pro rata basis.
The offer has been made on the basis of one ordinary share for every 139 ordinary shares held by each shareholder.
Where a shareholder does not accept the offer or accepts the offer only in part, the Bank will re-purchase additional shares from any shareholder who tenders shares over and above their pro rata entitlement for repurchase by the Bank (on a pro-rata basis) up to the aforesaid maximum number of shares that the Bank intends to re-purchase.
Union Bank embarked on an accelerated growth strategy since the acqusition by the US investment giant TPG in 2014.