Nishan Sumanadeera, Head of Frontier Capital Partners, an investment advisory that facilitated the deal said it was the biggest acquisition to go through on the exchange so far in 2011.
He said there were more opportunities for acquisitions.
Softlogic Holdings said in an earlier filing that it wanted buy 53.16 percent of Asian Alliance held by Asia Capital PLC and its subsidiaries and 20.36 percent held by another shareholder, Fast Gain International.
AP's strategy had paid off well for the group. Holding cash would not mean anything in a booming economy. If a company has to be successful, it has to convert cash into different and growing asset classes. Leveraging is a best method of acquisition especially in a low interest rate regime. This has been the screret recipe behind the success of Softlogic Group.
All the very best to them!!
AAIC's record profit of Rs368 mn in 2010 (vs Rs145 mn in 2009) was largely due to capital gains from equities, benefiting from CSE bull run.
Realised gains (Rs191 mn) and unrealised gains (Rs223 mn) from equities were Rs414 mn in 2010, up from just Rs72 mn in 2009.
AAIC's fund base has increased following Rs812 mn rights issue in late 2010, but the chances of those share trading gains being repeated this year seem very slim. As at 31st March 2011, AAIC even held 10% of LWL.
AAIC's June 2011 results could shed further light.