LOLC creates LOLC Ceylon
As part of LOLC Group’s global strategy to attract investors to the large finance companies it has created, LOLC is creating a platform to enable potential investors to acquire a minority stake in the finance companies it owns, the group said yesterday.
LOLC believes that these large-scale foreign investors have the capabilities to support their companies to grow even further and offer an even better service to their customers by introducing latest technologies, technical know-how and providing training to their employees.
For this purpose, LOLC Holdings PLC (LOLC) has designated a fully owned subsidiary, LOLC Ceylon Holdings Limited (LOLC Ceylon) to operate as a platform and plans to list LOLC Ceylon in the Colombo Stock Exchange.
Post-listing of LOLC Ceylon the shares owned by LOLC in LOLC Finance PLC (LOFC) amounting to 44.79%, shares owned in Commercial Leasing & Finance PLC (CLC) amounting 98.92% and the shares owned in LOLC Development Finance PLC (NIFL) amounting to 55.55% are to be transferred to LOLC Ceylon.
“As this is an internal group restructuring, the transaction will be executed at the prevailing market prices at the date of the transfer, as an off-the-floor transaction,” the statement said.
LOLC has obtained approval in principle for the above transfers from the Securities and Exchange Commission of Sri Lanka. Further, the Department of Supervision of Non-Bank Financial Institutions of Central Bank of Sri Lanka has confirmed that they have no objection on the proposed transfer.