National Development Bank (NDB) picked up a 29 per cent stake in its associate company NDB Bank (NBL), as part of its strategy to merge with the commercial banking entity.
Fridays acquisition effectively takes NDBs stake in the commercial banking operation to 51.5 per cent and above the 30 per cent takeovers and mergers code threshold.rn
rnNDB is expected to make a mandatory offer at an estimated Rs. 31, the highest price paid today in the Colombo Stock Exchange (CSE) to acquire the 29 per cent stake. rn
rnMarket sources confirmed that the 29 per cent sake included the part of the 14 per cent stake held by the Janashakthi Group and the 9.98 per cent held by Gold Quest.rn
rnA Janashakthi spokesperson told Lanka Business Online that a bulk of their stake was sold today, with the rest expected to go through the market on Monday.rn
rnThe move has been on the cards since earlier this year, when the Central bank reversed an earlier decision to limit NDBs stake in the commercial banking venture to 25