EFG Hermes, a leading financial services corporation in frontier and emerging markets (FEM), Wednesday announced the conclusion of its advisory services to Pakistan’s United Bank Limited (UBL) on the sale of the assets and liabilities of its Tanzanian subsidiary, UBL Tanzania (UBLT) to Exim Bank Tanzania Limited.
UBL is Pakistan’s largest private bank with more than 1,390 branches across the country and 19 international branches serving more than 4 million customers.
“The transaction is a testament to our ability to successfully conclude cross-border mandates involving multiple jurisdictions, laws and regulations …EFG Hermes is now uniquely positioned to continue its foray into Frontier Emerging Markets,” said Ali Khalpey, CEO of EFG Hermes Frontier.
The UBL advisory is EFG Hermes’ first cross-border M&A transaction in East Africa since entering the Kenyan market in 2017 as a hub and launching pad into East Africa.
“Our first frontier advisory came in 2018 in Southeast Asia with the IPO of ASA International (ASAI) on the London Stock Exchange (LSE)– followed by advisory on Helios Towers’ LSE listing earlier this year and we look forward to more to come.”
Exim Bank Tanzania now owns 100 percent of the business and assets of United Bank Ltd.
UBTL was set up in 2013 and offered retail and wholesale banking services to its customers.
Tanzania’s financial sector has 41 commercial banks, three development banks, six community banks, two microfinance banks, about 100 microfinance institutions and over 6,000 Saccos.