Thursday Nov 14, 2024
Thursday Nov 14, 2024
Monday, 25 October 2021 03:50 - - {{hitsCtrl.values.hits}}
LOLC Group is to invest $ 7 million or Rs. 1.4 billion to make the Pakistani microfinance venture a fully-owned subsidiary.
At present, LOLC Holdings’ subsidiary, the Singapore-based LOLC Asia Ltd., owns 50.1% stake in Pak Oman Microfinance Bank (POMB) following an investment in 2017.
LOLC said it has received in principle approval from the Financial Services Regulatory Authority in Pakistan and State Bank of Pakistan (SBP), to increase its shareholding in POMB to 100% via the purchase of shares from existing shareholders.
LOLC Asia Private is the investment holding company of LOLC Group’s financial services investments in Asia.
Post announcement, LOLC share price on Friday gained by 1.5% or Rs. 9.50 to close at Rs. 652.25, which is an all-time high.
LOLC said Pakistan, with a population of 221 million people and a per capita GDP of $ 1,194 presents tremendous potential for rolling out LOLC’s highly successful MSME model that specialises in serving bottom-of-the-pyramid entrepreneurs.
POMB currently carries out operations in Pakistan through 71 branches.
LOLC Group, with its robust MSME-based (Micro, Small and Medium Enterprises) business model, carries out financial services operations in Sri Lanka, Cambodia, Myanmar, Pakistan, Indonesia and the Philippines in Asia, Nigeria, Zambia, Tanzania and Malawi in Africa and in Tajikistan in Central Asia.
On Thursday, LOLC announced the exit from its investment in PRASAC Microfinance Institution Ltd. of Cambodia selling 70% stake in it for $ 647 million in two tranches of $ 422 million in April last year for 49% stake and $ 225 million (for remaining 21% stake) on 19 October.
