Wednesday Nov 13, 2024
Wednesday Nov 13, 2024
Friday, 7 January 2022 02:39 - - {{hitsCtrl.values.hits}}
Giant Commercial Leasing and Finance PLC (CLC) is to absorb Sinhaputhra Finance PLC (SFL) following approval by the Central Bank as part of the latter’s Master Plan for consolidation of the Non-Bank Financial Institutions.
CLC as at 30 September 2021 had assets worth Rs. 85 billion and SFL's figure was Rs. 5 billion.
The deal envisages issuance of 7,803 new CLC shares for every 10,000 existing shares of SFL (ordinary and preference).
The value of ordinary shares of SFL is 63 million and preference shares is 6.7 million bringing the total to 69.6 million. The number of new shares of CLC to be issued to existing SFL shareholders upon amalgamation is 54.36 million.
SFL share price yesterday dipped by Rs. 7.10 or 24% to Rs. 22.40 with 2 million shares changing hands via 976 trades for Rs. 48.8 million. CLC closed lower by 5% or Rs. 1.60 to Rs. 31.70.
The CLC’s deal with SFL comes hot on the heels of LOLC on Wednesday, saying that the Central Bank has directed it to amalgamate the licenced finance companies within the Group.
In response, LOLC said it will take measures to consolidate LOLC Finance PLC (LOFC) and Commercial Leasing and Finance PLC (CL) subject to receiving the applicable approvals and in compliance with the relevant laws and regulations where the remaining amalgamated entity will be LOFC.
