Sri Lanka money broker in buyout

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

Sept 25, 2009 (LBO) – A money broking firm controlled by listed Seylan Merchant Bank, a unit of the Ceylinco group, will be sold to an investment vehicle promoted by key officials. A 51 percent stake in SMB Money Brokers (Pvt) Ltd, will be sold to ASIL Holdings, an investment vehicle, the company said in a stock exchange filing. The sale price was not disclosed.

The deal was subject to regulatory approval, the firm said.

ASIL Holdings, in which shares have not been fully issued will have A M Jayasuriya and NN Jayathilake as directors. Jayanthilake is also an existing director of SMB Money Brokers.

The firm said 30 percent of the shares of ASIL Holdings will be held through an employee share ownership plan, and 70 percent will be sold to local and foreign investors.

In addition to the two directors, other subscriber shareholders of ASIL were P V Ranasinghe, MJNS Fernando and C S Liyanage.

Seylan Bank, a listed commercial bank which originally promoted Seylan Merchant Bank is now being administered by regulators after it faced a run with the collapse of an unregulated unit in its controlling Ceylinco group.