Though Sri Lanka is going through an economic turbulence Chaudhary Group (CG) in Nepal has extended confidence to Sri Lanka by acquiring 70.84% shares in Union Bank (UBC) via CG Capital Partners, a private equity company incorporated in Singapore investing with a market capitalization of LKR 9.1 billion.
“At this moment, Sri Lanka is going through very tough times and struggling to mobilise foreign funds and investments even through the IMF,” deduced Nepalese billionaire Binod Chaudhary. “Banks are under tremendous pressure as are the borrowers and despite all these economic setbacks; we have decided to take a plunge into Sri Lanka. We know it’s going to be tough, but we extend our stamp of confidence with Sri Lanka,” he said.
When the transaction was announced to the Colombo Stock Exchange on December 1, 2022, the Bank’s share gained 13.3% to close at LKR 8.50. With the acquisition of the majority shares in UBC, the eighth largest listed bank in Sri Lanka the Group makes its maiden foray into the financial services industry in Sri Lanka. CG is also the largest shareholder in Nabil Bank, which is currently the largest bank in Nepal’s private sector; post its recent acquisition of Nepal Bangladesh Bank.
When Chaudhary first made a significant investment in 2001 in the iconic Taj Samudra Colombo through a joint venture with Indian Hotels Corporation Limited (IHCL), it was in the middle of Sri Lanka’s debilitating war. While other investors were unwilling to consider any investment, Chaudhary saw opportunity in the war-torn country, a gesture appreciated not just by the government at the time, but the industry at large. This investment was also Chaudhary’s first ever foray into the hospitality industry, which today has a partnership with IHCL across 11 properties in six countries.
Chaudhary, who has been featured in the Forbes Billionaire’s Rich List since 2013 has a long-standing friendship with Sri Lanka and then invested in 12 other properties in partnership with Jetwing Hotels Group and Ceylon Hotels Corporation. CG Hospitality Holdings, the fast-growing hospitality vertical of CG Corp Global comprises over 141 hotels and resorts in 12 countries and 91 destinations with over 8,399 keys and is expected to grow to over 200 hotels and 10,000 keys by 2025.
CG Corp Global, with an exceptional legacy of 140 years has 123 brands, 160 companies, over 15,000 employees and spread across 32 countries in several sectors.
Add new comment