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 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.