Consolidation

July 22, 2014 (LBO) - George Steuart Finance Deshodaya Development Finance Limited (DDFC), has inked a deal to acquire George Steuart Finance Plc, which valued the licensed finance company at 500 million rupees. In the year to March, George Steuart Finance reported profits of 4.6 million rupees (45 cents per share) on interest income of 279 million rupees.

But in the standalone March quarter results the firm reported a surge in interest income and profits of 29 million rupees or 1.29 rupees per share.

DDFC is a finance company coming under Sri Lanka's Sarvodaya, a charity. It started as a micro-finance firm before becoming licensed finance company.

George Steuart Finance said in a stock exchange filing that a memorandum of understanding had been signed with DDFC, George Steuart & Company Ltd, and Capital Trust Holding Limited.

The company said the acquisition was subject to approval by the Central Bank, the sector regulator and its plan to consolidate finance companies.

According to the firm's March accounts, Capital Trust Holding had a 24.9 percent stake in George Steuart Finance. In April, George Steuart and Company Ltd bought a 50.8 percent stake in the firm for 329 million rupees o