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Union Bank confirms investment by Cayman Island’s Culture Financial Holdings


Union Bank of Colombo PLC confirmed that Culture Financial Holdings of the Cayman Islands has invested over Rupees 11 billion 420 million (Rs 11,420,474,984.70) enabling Union Bank to issue 742,156,249 ordinary voting shares of the company at Sri Lankan Rs. 15.30 each by way of a private placement and 218,281,250 warrants for Sri Lankan cents 0.30 each to be excercised within six years.

On August 14, 2014 reported that the Cayman Islands registered company, Cultural Financial Holdings Ltd. has entered into an agreement to buy nearly 70% of Union Bank of Colombo PLC shares for nearly Rs. 15 billion as a Private Placement.

The largest US based investment company TPG and its most recent Asia-focused investment fund TPG Asia VI, L.P and its related entities indirectly hold a 100% equity interest in Cultural Financial Holdings Ltd. through TPG Asia VI SF Pte. Ltd.

The Union Bank of Colombo PLC board of directors obtained approval from the Central Bank of Sri Lanka for Cultural Financial Holdings Ltd. to acquire 75% of shares from Union Bank of Colombo PLC and reduce it to 15% in 15 years thereafter.

The proceeds will be utilized by Union Bank of Colombo PLC to enhance its Tier 1 capital and also enable it to meet the minimum capital requirements imposed by the Central Bank of Sri Lanka which will come into effect from 01 January 2016.

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