13 January 2021 08:47 am
LOLC Group yesterday said it is creating a platform to enable potential investors to acquire minority stakes in the finance companies it owns as a part of the group’s global strategy to attract large foreign investors to those companies.
“LOLC believes that these large-scale foreign investors have the capabilities to support our companies to grow even further and offer an even better service to our customers by introducing latest technologies, technical know-how and providing training to our employees,” a stock market filing by the LOLC Holdings said.
For this purpose, LOLC Holdings has designated a fully owned subsidiary, LOLC Ceylon Holdings Limited to operate as a platform and plans to list LOLC Ceylon on the Colombo Stock Exchange (CSE).
Post listing of LOLC Ceylon the shares owned by LOLC Holdings in LOLC Finance PLC (LOFC) amounting to 44.79 percent, shares owned in Commercial Leasing & Finance PLC (CLC) amounting 98.92 percent and the shares owned in LOLC Development Finance PLC (NIFL) amounting to 55.55 percent are to be transferred to LOLC Ceylon.
As this is an internal group restructuring, the transaction will be executed at the prevailing market prices at the date of the transfer, as an off the floor transaction.
LOLC Holdings said it has obtained approval in principle for the above transfers from the Securities and Exchange Commission of Sri Lanka (SEC). Further, the Department of Supervision of Non-Bank Financial Institutions of Central Bank of Sri Lanka has confirmed that they have no objection on the proposed transfer.