Softlogic Finance PLC received Colombo Stock Exchange (CSE) approval for its Rights Issue of Rs 1.9 billion and the Extraordinary General Meeting of the Company is fixed for 9th November 2020, with the funds expected to be received by the Company by end November. The Rights Issue is fully underwritten by its immediate parent Softlogic Capital PLC and the entire equity infusion is hence guaranteed.
The Softlogic Group has also announced purchasing the shares of Abans Finance PLC consequent to which Abans Finance PLC will be amalgamated with Softlogic Finance PLC with the latter being the surviving entity. The transaction is currently pending approval of the regulator, the Central Bank of Sri Lanka. The combined entity, post-merger, will create a stronger and bigger company that is estimated to have total assets of Rs 32 billion, customer deposits of Rs 22 billion and customer advances of Rs 26 billion, whilst complying with all of the regulatory requirements of the Central Bank of Sri Lanka including the capital adequacy of the company. The capital position of the amalgamated entity is expected to be Rs 4.9 billion by 31st March 2021.
Softlogic Finance is therefore upbeat on its future prospects that will deliver a robust business strategy enhanced by digitalization and delivered by the new management team of the Company that is in place since May of this year. Unparalleled customer convenience and ease of doing business are expected to bring about synergies within the Softlogic Group’s large customer base and will follow the tremendous success delivered by its sister company Softlogic Life Insurance PLC that is the country’s fastest growing life insurer having recorded a five-year growth of 30% versus industry growth of 12%.
The Softlogic Group has long viewed Financial Services as an industry with substantial opportunities for growth. This proposed merger compliments Softlogic Finance in its ambition to increase its footprint in the NBFI sector, particularly in the dynamic leasing category, which represents an area of strategic focus for the company.
The Company is currently re-evaluating its product mix and service offering, and work is in progress to streamline its systems and processes to suit a digitized environment, in order to prepare the company to confidently face the constantly changing external landscape and sustainably deliver a distinctive and easily accessible value proposition to its customers.
The Softlogic Group is regarded as one of Sri Lanka’s most dynamic and progressive conglomerates, with industry leadership in key business verticals; with its presence visible across the Healthcare, Retail, Financial Services, ICT, Automobiles and Leisure sectors. Softlogic Finance is a registered finance company under Finance Business Act No. 42 of 2011 as well as a Specialised Leasing Company licensed by the Central Bank of Sri Lanka under Finance Leasing Act No. 56 of 2000.