Oct 04, 2016 (LBO) – Three shareholders of Sri Lanka’s Commercial Credit and Finance is planning to sell their stake to a Thai company, Commercial Credit said in a stock exchange filing, triggering a 31 percent share price rally.
BG Investments (6.98%), Creations Investments Sri Lanka (22.26%) and Mr. S L La France (0.74%) have entered into a share purchase agreement with Singapore based Group Lease Holdings to dispose their stake in Commercial Credit.
Subjected to necessary regulatory and other approvals, the 29.99 percent stake will be purchased by Group Lease Holdings at 111 rupees per share.
Group Lease Holdings, a Singapore-based company, is a fully owned subsidiary of Group Lease Public Company, a company listed on the Thailand Stock Exchange.
Meanwhile, Commercial Credit and Finance is also to sell its 28.1 percent stake in BG Myanmar Microfinance Company to Group Lease Holdings for 2.248 million US dollars.
Subjected to the necessary approvals from Myanmar being granted, the transaction is expected to realize a profit of around 273 million rupees before taxes to Commercial Credit.
Commercial Credit and Finance said they have already obtained the relevant regulatory approvals from Sri Lankan authorities.