Friday, 25 October 2013 03:51
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Stock market activity on Union Bank of Colombo got a boost yesterday following a mere disclosure that there is foreign institutional investor interest in the company.
UBC announced that it has received an indication of interest from a global institution in making an investment in UBC. “However, the indication of interest is not an offer of whatever nature relating to an investment in UBC,” the bank added.
Furthermore, it was stated that the investment will be subject to agreement being reached on the terms and conditions for such investment between the said party and the UBC, and the obtaining of necessary regulatory and corporate approvals.
The bank saw 7.2 million of its shares change hands via 1,161 trades for a turnover of Rs. 126 million, thereby topping the turnover list. Share price peaked to a high of Rs. 19 before closing at Rs. 18.60, up by 15% or Rs. 2.40. Of the amount traded, there was a crossing of two million shares at Rs. 17 each.
UBC has been in the news for prospective acquisition from various parties. It denied a Daily FT story that NDB was in talks for a strategic acquisition or partnership.
In recent days, ninth largest shareholder with 10 million shares or a 3% stake First Gulf Asia Holdings has been on the selling side, with retailers collecting quantities.
Vista Knowledge Ltd. holds 18.5% whilst Sampath Bank and Associated Electrical Corp hold 7.5% each. Other shareholders include Select Gain and Chairman Alex Lowell with 6.7% each. Public holding in UBC is 59% as at end June 2013.
