Union Bank gearing for growth in related businesses
View(s):Union Bank is gearing for growth in related areas within the country in the medium term amidst denials by its chairman and high networth investor, Alex Lovell that he is selling his stake (or part of it) in the bank, according to informed sources.
“Union Bank has seen a lot of retail activity in the past week due to these rumours. Alex, nor any of the other shareholders – Ajita de Zoysa, Prince Faisal Al Faisal, the grandson of King Faisal of Kingdom of Saudi Arabia, etc., are selling out. In fact they are exploring more growth options in related areas,” a source close to Mr. Lovell told the Business Times. On Thursday, Mr Lovell announced through the Colombo Stock Exchange that he had not sold his stake or doesn’t plan to, following reports on news media sites of a sale.
This came after Mr. Lovell received many telephone calls from financial institutions, hedge funds and investment banks from around the world over a possible sale. When asked why there was intense retail activity in Union Bank’s shares, the source said it was retailers punting shares on rumours.
In October 2007 Union Bank got a Rs.420 million capital infusion from Prince Faisal Al Faisal, the grandson of King Faisal of Kingdom of Saudi Arabia and Mr. Lovell where both investors together acquired a 10 per cent stake in the bank.
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