India’s Muthoot acquires 30% stake in Asia Asset Finance
Tuesday, 26 August 2014 01:59
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The largest gold financing company in the world, Muthoot Finance yesterday acquired a 30% stake in Asia Asset Finance.
A stock market filing to the Colombo Stock Exchange by Asset Finance disclosed 167,785,600 ordinary shares of the company had been purchased at Rs.1/60. This constituted 29.98% of the shares in issue, it noted.
Kerala-based non-banking financial company Muthoot Finance Ltd. said it had acquired a 30% stake in Sri Lanka-based Asia Asset Finance Plc (AAF).
In a notice to Bombay Stock Exchange (BSE), Muthoot Finance said it had paid approximately $ 2.1 million to acquire the stake.
“Muthoot Finance is seeking synergies by helping the AAF to operationalise loan against gold ornaments in Sri Lanka drawing on the expertise of Muthoot Finance in this field. Muthoot Finance through this investment expects AAF to improve its lending operations and profitability in coming years and which may improve value of its present investment in AAF in coming years,” the company said.
AAF, which is listed on the Colombo Stock Exchange, is into retail finance, hire purchase and business loans and has 11 branches across Sri Lanka, according to the release.
The deal was announced after market hours.
On Monday, shares of Muthoot Finance dropped 0.73% to Indian Rs. 189.75 apiece on the BSE, while the exchange’s benchmark index, Sensex gained 0.07% to 26,437.02 points.
