Capital Development & Investment Co (CDIC) plans to come out with a Rs. 1.5 bn rights issue to pay for its acquisition of Eagle Insurance.
NDB on Thursday bought out Zurichs 58.44 percent stake in Zurich NDB Finance Lanka (the holding company of Eagle Insurance) through its subsidiary CDIC.rn
rnCDIC coughed up Rs. 1.5 bn at Rs. 143 per share.rn
rnCDIC paid for the acquisition through a bridging finance facility from NDB. rn
rnNDB owns 75.6 percent in CDIC, while Bank of Ceylon owns 23.9 percent. rn
rnNDB is expected to take up a bigger slice in the rights issue, as Bank of Ceylon is expected not expected to take up its entire stake in the rights issue.rn
rnAnalysts expect the new owners to leverage on Bank of Ceylons 300 plus branch network to cross sell products.rn
rnWith Zurichs exit, the new owners have appointed Messrs Ranjith Gunasekera, Shanthi Palihena and Sarath Wikremanayake as CDICs representatives on Eagles board from July 3.rnrn