Regulatory nod for merging of LOLC group finance firms

27 December 2017 09:43 am - 0     - {{hitsCtrl.values.hits}}

A A A

  • LOLC Finance receives green light to acquire 100% of LOLC Micro Credit
  • To raise Rs.5.9 billion via rights to meet regulatory capital requirements  

 

A merger of finance companies within the LOLC group has received regulatory approval from the Central Bank, according to a disclosure made to the Colombo Stock Exchange.


LOLC Finance PLC said that it has received the green light to acquire 100 percent of the shares of LOLC Micro Credit Ltd (LOMC) and merge with it in line with the finance sector consolidation plans.


Currently, the group parent Lanka ORIX Leasing Company PLC (LOLC) owns 90 percent of the shares in LOLC Finance, while LOMC is 80 percent owned by LOLC and 20 percent by Netherlands Development Finance Company (FMO).


Due to the increase in the asset base of the merged entity, LOLC Finance will raise capital via a Rs. 5.9 billion rights issue, to meet regulatory capital adequacy requirements.


The firm will issue 1.4 billion shares, in the proportion of one new share for every two shares held, at a consideration of Rs. 4.20 per share. 
LOLC Finance shares ended trading at Rs. 3.70 yesterday, after gaining 40 cents in intraday trading.


The rights issue requires approval from the Colombo Stock Exchange and LOLC Finance shareholders.


LOLC Finance said that it is expecting significant growth in assets as the synergies made by the merger is poised to unlock new market opportunities.

 

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Army’s LRRP Ambush of LTTE’s Military Intelligence Chief

A news report in the Dailymirror last August stated that the Long Range Recon

“I don’t think Sri Lankans can be realistically ruled by force” -Ahimsa Wickrematunge

Twelve years after the assassination of Lasantha Wickrematunge, the founding

Decisions to be made in Sri Lanka’s hunt for the COVID-19 Vaccine

Around the world, governments are gearing up to roll out nationwide immunizat

“I am the Godfather of Russian tourists” - Udayanga Weeratunga

Former Sri Lankan Ambassador to Russia Udayanga Weeratunga is back in the sce

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 


MIRROR CRICKET