CB approves Orient Finance, Bartleet Finance amalgamation

Monday, 25 May 2015 00:00 - - {{hitsCtrl.values.hits}}

The Central Bank has approved the amalgamation of Orient Finance Plc and Bartleet Finance Plc with the latter as the continuing entity.

The approval follows a request submitted to the Central Bank after the Boards of Directors of Orient Finance Plc (OFP) and Bartleet Finance Plc (BFP) decided to amalgamate the two entities in their best interest.

The two companies are subsidiaries of Janashakthi Plc and post-amalgamation the duo will continue as a single legal entity, which is a licensed finance company.

The Central Bank has approved the amalgamation of the two companies with BFP taking over all the assets and liabilities of OFP.

The move is now subject to the approval of the Securities and Exchange Commission.

Thereafter the companies will embark on the steps that have to be taken to complete the amalgamation and present the proposal for shareholder approval of the two companies.

“The amalgamation will only be effective after all required regulatory and shareholder approvals are received,” a filing by the companies added.

BFL’s assets as at 31 December 2014 were Rs. 7.48 billion and liabilities were Rs. 6.8 billion. Its net asset per share was 84.34. OFL had Rs. 6.16 billion in assets and Rs. 5.27 billion in liabilities as at 31 December 2014. Its net asset per share is Rs. 7.64.

Janashakthi Ltd. purchased 6,639,998 voting ordinary shares of Bartleet Finance Plc from the major shareholder of Bartleet Transcapital Ltd. constituting approximately 86.79% of the voting rights of the company on 22 January 2015 for Rs. 875 million.

Furthermore, at the time of the above transaction, Janashakthi Ltd. held 993,749 voting ordinary shares of Bartleet Finance Plc, constituting approximately 12.99% of the voting rights of the company which had been purchased between 2 January 2015 to 10 January 2015 for Rs. 109.3 million.

Janashakthi Ltd. now holds total of 7,633,747 ordinary shares of Bartleet Finance Plc, constituting approximately 99.78% of the voting rights of the company.