Nation Lanka Finance to acquire 100% stake in Building Society
Friday, 5 July 2013 00:00
-
- {{hitsCtrl.values.hits}}
Nation Lanka Finance PLC has entered into and signed a Memorandum of Understanding (MoU) for the acquisition of a 100% stake in Nation Building Society Limited (NBSL) and its Group of Companies. Nation Building Society Ltd. is the pioneer in the building society industry, operating under the purview of the Housing Ministry and engaged in providing housing loans to its customers NBSL Group with an asset base in excess of Rs. 1,000 m and a branch network of 11 spread across the island including highly valuable commercial property on Galle Road Colombo 4, which houses their Head Office, subsequent to acquisition will contribute to Nation Lanka Finance PLC’s net assets an estimated Rs. 500 m, which in turn is expected to yield an immediate gain of around Rs. 2 per share in the Group’s net asset per share value.
Through this acquisition Nation Lanka Finance expects to leverage on the NBSL Group’s branch and client base to cross-sell the company’s core products and services; further, the synergies of the organisations with NLF’s 20 branches and NBSL’s 11 branches will definitely auger well for both groups.
Nation Lanka Finance has now positioned itself to be a major player in the financial services sector and plans are underway to consolidate its position in the market, for which this acquisition of the NBSL Group together with their subsidiaries will be a stepping stone for NLF on their calculated journey of attaining conglomerate status, boasting of an asset base in excess of Rs. 5 billion.
Apart from enhancing the company’s position, such mergers and acquisitions will also give Nation Lanka Finance shareholders and other stakeholders better and enhanced returns and benefits on their investments. A further announcement on the acquisition will be made on completion of the full scope financial, tax, HR, legal and secretarial due diligence, which is currently in progress, and after other relevant approvals have been obtained from the regulatory bodies.
