Union Bank of India gains after completing stake acquisition in two joint ventures

Union Bank of India rose 2.33% to Rs 144.70 at 09:45 IST on BSE after the bank said that it has completed the acquisition of 49% shareholding of Union KBC Asset Management Company and Union KBC Trustee Company.

The announcement was made after market hours yesterday, 21 September 2016.

Meanwhile, the S&P BSE Sensex was up 323.46 points or 1.13% at 28,830.88

On BSE, so far 68,000 shares were traded in the counter as against average daily volume of 6.83 lakh shares in the past one quarter. The stock hit a high of Rs 147.50 and a low of Rs 144.10 so far during the day. The stock had hit a 52-week low of Rs 104.05 on 29 February 2016. The stock had hit a 52-week high of Rs 188.50 on 8 October 2015. The stock had underperformed the market over the past 30 days till 21 September 2016, advancing 4.39% compared with 1.85% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 12% as against Sensex's 5.57% rise.

The mid-cap bank has equity capital of Rs 687.44 crore. Face value per share is Rs 10.

Union Bank of India said that it has completed the acquisition of 49% shareholding of Union KBC Asset Management Company and Union KBC Trustee Company from KBC Participations Renta S.A. and its affiliates (KBC Asset Management NV) on 20 September 2016. Accordingly, Union KBC Asset Management Company and Union KBC Trustee Company have become wholly owned subsidiaries of Union Bank of India.

Last year, the board of Union Bank of India approved purchase of 49% stake in Union KBC Asset Management and Union KBC Trustee Company from KBC Participations Renta. KBC Participations Renta is a group company of Luxembourg-based KBC Asset Management NV.

Union Bank of India and KBC Asset Management NV had formed two joint ventures - Union KBC Asset Management Company and Union KBC Trustee Company - in 2009 with 51% and 49% holding, respectively.

Union Bank of India's net profit fell 67.9% to Rs 166.32 crore on 1.4% decline in total income to Rs 8916.51 crore in Q1 June 2016 over Q1 June 2015.

Union Bank of India is one of largest state-owned banks in India. The Government of India (GoI) held 63.44% in Union Bank of India (as per the shareholding pattern as on 30 June 2016).

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