Prime Lands to buy 75% of Summit Finance for Rs. 510 m

Wednesday, 4 January 2017 00:00 - - {{hitsCtrl.values.hits}}

The Monetary Board has approved the move by Prime Lands Ltd. to buy 75.5% stake in Summit Finance Plc for Rs. 510 million from Sarvodaya Development Finance Ltd.

The stake amounting to 17 million shares is at Rs. 30 each. The net asset value per share of Summit Finance is Rs. 14.34 as at September 2016.

Prime Lands also owns 47.5% stake in HNB Grameen and the acquisition of Summit Finance will further strengthen its foray in to financial services market in addition to its growing footprint in property, real estate and housing sector.

The transaction is expected to be completed shortly and once concluded Summit Finance will reveal more details.

Summit Finance was previously George Stuart Finance, whose control was acquired by Deshodaya Development Finance Ltd., at Rs. 22.20 per share in September 2014. In September 2016, ended quarter Summit share priced peaked highest of Rs. 35 and lowest of Rs. 24.90 before closing at Rs. 31.70.

It had assets worth Rs. 1.43 billion as at September 2016 down from Rs. 1.49 billion as at March 2016. Liabilities amounted to Rs. 1.1 billion.

High net-worth but low profile investor Dr. T. Senthilverl holds a 9.57% stake whilst public holding is 24.5% held by 977 shareholders.