LOLC buys 10% of DFCC Bank

LOLC Holdings yesterday said it had acquired 9.99 percent of DFCC Bank PLC through the latter’s recently concluded rights issue.

As of yesterday’s market filing, LOLC Holdings held little over 40.2 million DFCC Bank shares, which it had bought for Rs.2.2 billion.

DFCC Bank’s recently closed Rs.6 billion rights issue concluded undersubscribed. The basis of the rights issue was 12 new shares for every 37 held at Rs. 55 per share. 

DFCC Bank said shares that remain unsubscribed after allocation to shareholders who applied for additional rights (in full subscription of their rights) will be allotted by the Board at the discretion to any person or persons.

The objective of the rights issue was to increase the Tier 1 capital of the bank to accommodate and support the bank’s future business expansion plans. 

Major shareholders of DFCC Bank as of March 31, 2022 were HNB (15 percent), BOC (12.5 percent), M.A. Yaseen (10 percent), SLIC (9 percent), EPF (8 percent), Melstacorp (7.3 percent), and Seafeld International (5.8 percent).  Public float was 62.5 percent held by 10,510 shareholders.

 LOLC Holdings through its subsidiary Brown & Company PLC also holds 10 percent stake in Seylan Bank PLC.