People’s Leasing announces move to buy 33% of First Capital for Rs. 5 b

People’s Leasing & Finance PLC, said yesterday it plans to buy a 33% stake in First Capital Holdings PLC for Rs. 5 billion.

In a disclosure to the CSE, the People’s Leasing & Finance said in its venture into furthering opportunities in the financial services sector, has been having negotiations with Janashakthi Ltd., the Major Shareholder of First Capital Holdings PLC, to purchase a minority stake in First Capital Holdings PLC.

Accordingly, People’s Leasing & Finance PLC entered into a Share Purchase Agreement with Janashakthi Limited to purchase 133,650,000 ordinary shares held by Janashakthi Ltd in First Capital Holding, which constitutes 33% of the issued shares of First Capital Holdings, at a consideration of Rs. 37.10 per share amounting to a total consideration of Rs. 4,958,415,000.

The intended transaction is subject to the approval of the Central Bank of Sri Lanka and any or all other regulatory authorities applicable to the two parties. In the event the proposed transaction is sanctioned and consummated, People’s Leasing & Finance will be obliged in terms of Rule 3 I of the Take-overs and Mergers Code 1995 as amended in 2003, to make a Mandatory Offer to the remaining shareholders of First Capital Holdings (however excluding the balance shares held by Janashakthi Ltd. who would not be accepting the offer).