UBL – UNBL UK deal conclusion to result in gains of PkR7.2bn

 UBL has successfully concluded the transaction to sell its shareholding in United National Bank Limited UK (UNBL UK) after obtaining all the regulatory approvals. 

·         UBL owns 55% shareholding in United National Bank Limited UK (UNBL UK).

·         UNBL was formed in 2001 from the merger of the UK branches of UBL and NBP. The principal activities of UBL UK are to provide retail banking, wholesale banking and treasury services to financial institutions and trade finance facilities to businesses of all sizes. UNBL operates one branch inside the United Kingdom.

·         The Bestway Group has acquired 50.1% of the shares upfront at a price of GBP25.49mn, with an option to purchase the remaining 4.9% of the shares within 36 months of the initial acquisition of 50.1% at the same price, terms, and conditions.

·         The sale of UNBL UK stake is projected to result in a substantial Capital Gain of PkR7.2bn or PkR5.87/sh on an unconsolidated basis, marking a significant financial achievement for UBL.

·         According to the bank’s financials, disposing of this investment would reduce UBL’s Consolidated Risk Weighted Assets by PkR339.4bn and increase the bank’s Consolidated Capital Adequacy Ratio by over 200bps.

Courtesy – AKD Research

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