United Bank Limited announced plans to sell its operations and businesses in Tanzania to Exim Bank.
The two banks agreed to buy and sell assets and liabilities, but regulatory, legal and technical practices such as due diligence will be held in the coming days.
According to the official notice issued to the Pakistani Stock Exchange, it said
“UBL and UBTL signed a Letter of Intent (LOI) with Exim Bank Tanzania Limited for the sale of commitment UBTL as a sale of assets / liabilities subject to all corporate compliance and application regulatory approvals in both locations, in other words, Pakistan and Tanzania. “
UBL Will Sell Its Tanzanian Business to Exim Bank
United Bank (Tanzania) Limited (UBTL) is a subsidiary of United Bank Limited. It was founded in 2012. Currently, the bank is in Tanzania and its banking license remains intact.
In 2018, UBL made a capital injection of Rs. 509 million to meet the minimum capital requirements of its subsidiary in Tanzania. The bank had losses, although the pre-tax loss before 2018 was reduced by 48% compared to 2017.
The UBL administration is currently reviewing its commercial strategy and prospects for UBTL. Signing LOI with Exim Bank is part of this strategy.
Exim Bank is a large banking institution in Tanzania and offers commercial banking services to individuals, small and medium businesses (SMEs) and large corporate clients. Since December 2017, total bank assets have been valued at $ 706.5 million.
Banking activities include the regions of Dar es Salaam, Zanzibar, Tanga, Morogoro, Kilimanjaro, Arusha, Manyara, Mwanza, Shinyanga, Kigoma, Iringa, Mbeya and Mtwara in Tanzania and subsidiaries abroad in the islands of Anjouan, Moheli and Moroni of the Union of Comoros. , in the Republic of Djibouti and in Uganda, an international presence that does not correspond to other Tanzanian banks.