According to market data, 17.5 million Union Bank shares traded during the day between Rs.38-45, contributing Rs.716 million to the day’s turnover. The highest traded price for the share was Rs.45 and it closed at Rs.38.50. The share began trading at Rs.45, up from Rs.20 compared to the issued price.
“Since Union Bank issued only 15 million shares, we believe some of the bank’s shareholders have disposed part of their staekes,” a stockbroker told Mirror Business.
During the day, two major crossings of Union Bank shares were executed—one million shares at Rs.42 and 765, 000 shares at Rs.31. The latter crossing was in fact, able to surprise the market nevertheless due to its price.
Yesterday Mirror Business reported that Sampath Bank, the second largest shareholder of Union Bank may dispose its 7.9 percent of 26 million shares—which they acquired at ‘zero cost’ in an accounting point of view, as Sampath has provided for the acquisition—for a huge capital gain that could amount to over Rs.800 million.
However it was not clear whether it was Sampath or any other shareholder who disposed some shares into the market.
According to unconfirmed reports Rosewood Private Limited, which was the10 largest shareholder of Union Bank disposed its entire shareholding or part of it into the market.
According to the prospectus, the top ten shareholders of Union Bank were Vista Knowledge (Pte) Ltd. (19.4%), Sampath Bank Plc (7.9%), Associated Electrical (7.41%), Select Gain Limited (7.01%), Ajith Wijeyesekera (5.23%), Alex Lovell (5.1%), Exab International (4.5), Caritano venture Corp. (3.82%), First Gulf Asia Holdings (3%) and Rosewood Private Limited (2.86%).
US $ 5 million IFC facility for UBC
International Finance Corporation (IFC), a member of the World Bank Group, will provide a $5 million trade-finance facility to the Union Bank of Colombo Limited to help boost international trade opportunities for the bank and its small-business and corporate-sector clients.
The trade-finance facility will provide the Union Bank of Colombo with risk coverage and access to a global network that will support growth of the bank’s trade-finance business. The network will facilitate transactions in challenging markets and enable Union Bank to build relationships with new institutions that will reduce risk and provide trade opportunities for small and medium enterprises.
“IFC’s support is very timely as Union Bank embarks on a new strategy to become the preferred banker for small and medium enterprises,” said Anil Amarasuriya, Director and CEO of Union Bank of Colombo Limited. “The facility will help us better support smaller businesses by offering trade-finance products.” This investment adds to IFC’s list of banks in Sri Lanka that are supported under IFC’s Global Trade Finance Programme.
“IFC’s support to Union Bank of Colombo fits well with our strategy to partner with banks and financial institutions that are committed to developing Sri Lanka’s small and medium enterprises,” said Rachel F. Robbins, IFC Vice President and General Counsel. “The facility will help strengthen the bank’s capacity to support trade finance and provide access to over 80 emerging-market countries.”
IFC launched its Global Trade Finance Programme in 2005, to help increase global trade in developing countries and promote flows of goods and services among these nations. The programme has now a network of more than 300 participating banks worldwide. In fiscal 2010, IFC issued $3.46 billion in guarantees through the programme to support trade with emerging markets.
source - www.dailymirror.lk
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