Bestway Cement Limited (BCL) on Wednesday showing interest to buy the entire shareholding of 12.23 percent from Abu Dhabi Groups of its subsidiary UBL Insurers, an associate company of United Bank Limited (UBL). According to the notice to Karachi Stock Exchange by BCL, the Company is considering to acquire the entire shareholding of the Abu Dhabi Groups (12.23%) in UBL Insurers Limited at an offer price of Rs 6 per share.
Currently, Bestway (Holdings) Limited and UBL, associated companies of BCL jointly hold 85.60 percent of the shareholding in the UBL Insurers along with management control. The proposed transaction will be subject to necessary approvals and legal formalities, statement added.
Earlier, the Bestway Group, UK based conglomerate increased its shareholding in UBL to 61.37 percent by acquiring an additional 10.3 percent of the shares from the Abu Dhabi Group in March 2014. Through an investment of over $120 million, Bestway Group has acquired the entire shareholding of its former joint venture partner the Abu Dhabi Group. After this investment, the management rights and control of the bank is solely rest with Bestway Group.
Since October 2002 Bestway Group has invested nearly $0.6 billion in UBL. In the post privatisation period, the Bank’s profitability has increased from Rs 1.5 billion to Rs 19.7 billion and UBL has paid over Rs 61 billion in taxes to national exchequer. The Bank donated Rs 404.6 million towards charitable causes.
BCL already has successfully acquired the Lafarge Pakistan Cement Limited (LPCL) for an enterprise value of $329 million.
Zameer Choudrey Bestway Group Chief Executive and CEO of Bestway Cement said, “Through this investment we have reinforced our commitment to Pakistan where our cement and banking businesses continue to flourish”. UBL, Bestway’s banking division is Pakistan’s second largest private bank with assets under management of $10.3 billion and a branch network of over 1,400 branches serving over five million customers.
Source: Daily Times
