KARACHI – The Bestway Group, a UK based conglomerate founded by Sir Anwar Pervez, has announced that it has boosted its shareholding in United Bank Limited (UBL) to 51.07 percent by acquiring an additional 20 percent of shares from the Abu Dhabi Group.
HSBC provided an integrated advisory and financing solution and acted as the sole bank in the deal. UBL is Pakistan’s second largest private bank. In 2002, a consortium consisting of Bestway Group and Abu Dhabi Group acquired 51 percent of UBL shares together with management rights and control of the bank through the Government of Pakistan’s privatisation process.
The consortium currently owns 61.37 percent of the bank with Bestway Group’s share at 31.07 percent and Abu Dhabi Group at 30.30 percent. After the investment, management rights and control of the bank will continue to be retained within the current consortium. Additionally, no changes are being made in the senior management or in the board of directors.
Bestway Group Chief Executive Zameer Choudrey has said, “this is a strategic long term investment for Bestway Group. We are delighted to make this acquisition as we believe that UBL is a solid bank with huge potential”. Choudrey stated, “this investment is a testimony of Bestway Group’s long term commitment to UBL and Pakistan”.
Mark Haines, HSBC’s Head of Corporate Banking in the Thames Valley commented that, “Bestway Group is a long-standing customer and a thriving business. This funding is a great example of how HSBC can help customers to take advantage of international growth opportunities.”
UBL has an asset base of $7.6 billion, advances of $4.3 billion, deposits of $5.98 billion, CAR of 14.4 percent and EPS of 8.7x. UBL has a vast network of over 1,100 branches in Pakistan and a strong presence in Middle East, North America, Europe, China and Central Asia. It has a UK based subsidiary, United National Bank which has six branches in UK. UBL provides employment to over 14,500 people and serves over five million customers.
Since 2002, UBL has achieved strong growth in major aspects of its business. With a wide ranging, dynamic portfolio of globally competitive products and services and a proven track record spanning over half a century, UBL is at the forefront of the banking sector in Pakistan as well as in the region.
In looking to the future, Choudrey said, “UBL shall continue to focus on strengthening its balance sheet through acquisition of low cost deposits and improvement in asset quality, as well as grow its international business in a secure and selective manner”. “Overseas Pakistanis play an indispensable role in the development of Pakistan. Bestway Group is proud to be a part of the Pakistani diaspora and we hope to develop UBL into a conduit to channel more investment into Pakistan from non resident Pakistanis”, Choudrey said.
Bestway Group is among the top ten family businesses in UK with annual turnover of £2.1 billion. Bestway Group’s wholesale operations are the 2nd largest in the UK with an 18 percent market share. It trades from 61 warehouses, covering over 5.5 million square foot of selling space, offering a product range of over 25,000 items and serving over 120,000 independent retailers and foodservice customers nationally.
The Group also provides employment to over 5,000 people in UK. Bestway Group’s wholesale operations continue to expand. In June 2010, the Group acquired the Bellevue business from the Bensons in Scotland.
