UB Finance Company begins operations, reviving resurrecting failed F&G Co LtdView(s):
UB Finance Company, formed by the Union Bank (UBC) with the acquisition of The Finance and Guarantee Company Ltd (TF&G), began operations on Tuesday, the company said. UBC together with an International foreign investment Fund ShoreCap II Ltd of USA has acquired over 98 per cent of the voting shares of TF&G.
This paves the way towards infusing new capital to resurrect one of Sri Lanka’s oldest finance companies TF&G at a total investment in excess of Rs. 1.1 billion, the media release said. UB Finance Company, licensed by the Central Bank, will provide a wide range of financial services for its customers including fixed deposits, savings real estate, leasing , hire purchase, loans, and pawning, the media release revealed.
It said that the new-look company with the backing of Union Bank will be able to restore public confidence in the troubled firm.
F&G was earlier managed by the Merchant Bank of Sri Lanka. The company has around 3000 depositors with a total deposit base of around Rs. 3.3 billion Over 50 per cent of the company’s deposits has been converted to non voting shares with the consent of depositors.