Janashakthi acquires 31% stake of Dunamis Capital for Rs. 1.4 billion

• Says deal will be launchpad to consolidate JPLC as a leading financial services conglomerate in the country  

Janashakthi PLC (JPLC) yesterday announced the acquisition of 31.14% of the issued capital of Dunamis Capital PLC, the holding company of First Capital PLC and Kelsey Developments PLC, for Rs. 1.4 billion (Rs. 36.60 per share).The sellers were Nextventures Ltd. and Dinesh Schaffter.

The transaction will result in the consolidation of all of the listed holdings of the Schaffter family under one entity, making Janashakthi PLC the parent company of all the family-controlled businesses. 

Speaking on behalf of the Schaffter family, Janashakthi PLC Chief Executive Officer Ramesh Schaffter, said that the restructure brings about a return to the status-quo that existed 12 years ago.

“The transaction will function as a launchpad for a range of strategic partnerships in future, which the company is confident it will attract, given its current structure and growth prospects. The fusion of multidimensional expertise within the finance industry via its insurance, investment banking, asset management, stock brokering and non-banking finance companies consolidates JPLC as a leading financial services conglomerate in the country.”

Consequent to the acquisition, Janashakthi PLC will make a mandatory offer to all other shareholders of Dunamis Capital. With the undertaking from Dinesh Schaffter and Manjula Mathews to accept the mandatory offer, upon conclusion of the mandatory offer, JPLC is expected to have a shareholding in excess of 90% in Dunamis Capital. The transaction will result in Dunamis Capital along with First Capital and Kelsey Developments becoming subsidiaries of Janashakthi PLC. 

First Capital Holdings is the investment banking arm of the Dunamis Capital Group and consists of First Capital Treasuries, First Capital Asset Management, First Capital Equities, First Capital Markets, and First Capital Ltd. Kelsey Developments is the property development arm of the Dunamis Group. 

Incorporated in 1994, Janashakthi PLC is the holding company of Janashakthi Insurance PLC, Dunamis Capital Group and Orient Finance PLC. It is headed by Chief Executive Officer Ramesh Schaffter, and the Board of Directors comprises C.T.A. Schaffter, Prakash Schaffter, Ramesh Schaffter, Eardley Perera and Mohan Dias.