Abans Finance to place 20% stake with Ironwood for Rs. 277 m

Abans Finance Plc Board has resolved to sell a 20% stake of the Company to Ironwood Investment Holding Ltd., for Rs. 276.7 million.

This will be via a private placement of 11.068 million shares at Rs. 26 per share. Ironwood Investment Holding is an investment vehicle for Ironwood Capital Partners.

The current stated capital of Abans Finance Plc is Rs. 567.37 million comprising 44 million shares. Post issuance it will be 55 million shares.The placement is subject to regulatory and shareholder approval. 

Abans Finance said proceeds will be utilised to meet future capital adequacy requirements and for future investment and lending activities.

Abans Finance Plc’s assets amounted to Rs. 6 billion as at 31 March 2016, up from Rs. 4.7 billion a year earlier. Net Asset Per Share is Rs. 16.62. Liabilities amounted to Rs. 5.5 billion as against Rs. 4.3 billion in FY15.

In FY2016, its income amounted to Rs. 1.3 billion up from Rs. 958 million whilst operating income rose to Rs. 756.6 million from Rs. 503 million in FY15.Pre-tax profit was Rs. 129.4 million, up from Rs. 97.5 million and after tax profit was Rs. 90.4 million as against Rs. 73 million. 

In FY16, the Company issued 7,400,000 shares by way of a Rights Issue in the proportion of One (01) Ordinary Share for every Five (05) held and raised Rs. 185 million. 

Abans Plc owns 89.2% of the Company as at 31.3.2016 and the public holding is 10.33% whilst it has 677 shareholders.