DFCC Bank plans to start due diligence work on MERC Bank next week and hope to finalise the transaction within two-months, a top official said Wednesday.
DFCC said earlier it was in talks with MERC Bank, with the intension of acquiring it.rn
rnldblquote Things are progressing. We have been open about our intensions to get a commercial banking licence and the opportunity presented itself to us,
dblquote DFCC CEO, Nihal Fonseka told Lanka Business Online.rn
rnFinancial analysts expect DFCC to inject up to Rs. 400 mn in fresh capital for a 76 percent slice in the cash starved MERC Bank.rn
rnFonseka declined to put a figure saying that ldblquote if the package is attractive, we would like to have it.
rnMERC Bank started off with a Rs. 250 mn capital, but has since seen its capital wiped off due to high start up costs. A lack of a foreign exchange dealer licence, also crippled its operations during its formative years of operation.rn
rnMERC is carrying accumulated losses of over Rs. 30