Janashakthi to acquire Bartleet Finance to merge with Orient Finance
Monday, 11 August 2014 00:00
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Janashakthi Ltd. has entered into an agreement to acquire 86.79% of Bartleet Finance Plc (BFP) and plans to amalgamate the latter with Orient Finance Plc.
The move is in compliance with the financial sector consolidation program of the Central Bank.
The planned acquisition is subject Janashakthi obtaining all relevant statutory and regulatory approval and Janashakthi Ltd. carrying out due diligence of BFP and being satisfied with the financials submitted.
Orient Finance Plc said the Central Bank by its letter of 7 August 2014 has approved in principle the planned acquisition by Janashakthi Ltd., the ultimate parent of Orient Finance Plc, on behalf of OFP and the subsequent amalgamation of BFP with OFP. Janashakthi Ltd. also holds a 67.85% stake in Janashakthi Insurance Plc.
Net asset per share was Rs. 81.81 as at 31.3.2014 up from Rs. 76.43 in FY13. BFP’s highest share price in the FY14 was Rs. 98.15 and lowest was Rs. 83.78 before closing at Rs. 98.15, up from Rs. 79.75 in the previous year.
Bartleet Group, whose origins date back to 1904 and became a 100% Sri Lankan-owned entity under Mallory Wijesinghe in 1958, holds a 86.79% stake in BFP via Bartleet Trans Capital Ltd.
Bartleet Group financial services sector business also includes a 50% stake in stock-broking firm Bartleet Religare Securities Ltd. and Bartleet Asset Management Ltd., as well as a 100% stake in Strategic Insurance Brokers Ltd. and 19.5% in Life Insurance Corporation (Lanka) Ltd.
Apart from Bartleet Trans Capital, there are a host of individual shareholders and a few institutional shareholders in BFP.
As at 31 March 2014, BFP, which has 17 branches, had assets worth Rs. 7.8 billion including Rs. 5.6 billion in loans and advances to customers. Liabilities amounted to Rs. 7.2 billion inclusive of Rs. 6.46 billion as due to customers.
Shareholders’ Funds were Rs. 626 million including stated capital of Rs. 306 million.
In FY14, income amounted to Rs. 1.5 billion whilst net operating income was Rs. 435 million.
Pre-tax profit was Rs. 36.4 million, down from Rs. 63 million in FY13.
On the other hand, Orient Finance posted a Rs. 1 billion total income and posted a net profit of Rs. 75.5 million, though down from Rs. 169 million in FY13. Its deposit base was Rs. 1.47 billion as at end FY14. Its net asset per share was Rs. 7.43, up from Rs. 6.94 in FY13.
Orient Capital Ltd. holds a 65% stake in Orient Finance whilst First Capital Holdings owns a 20% stake. In the first quarter of FY15, Orient Finance saw income grow by 20% to Rs. 299 million and net profit by 91% to Rs. 18.6 million.
Assets grew by 8% to Rs. 5.3 billion and liabilities by 9% to Rs. 4.4 billion inclusive of Rs. 2.05 billion in customer deposits. It had retained earnings of Rs. 319.6 million. Net asset per share was Rs. 7.60 as at 30 June 2014.
