Home / Front Page/ Consortium to invest Rs. 700 m in MBSL Insurance

Consortium to invest Rs. 700 m in MBSL Insurance


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 8 January 2019 00:16

Facebook

A consortium of investors is to infuse Rs. 700 million in to MBSL Insurance Ltd., as part of an overall initiative to recommence the business. 

The Merchant Bank of Sri Lanka and Finance Plc (MBSL) insurance subsidiary is currently suspended due to failure to comply with minimum capital requirements stipulated by the insurance regulator IRCSL.

Daily FT learns the investor is United Capital Holdings Ltd., which includes a consortium comprising institutions and individuals. 

MBSL will invest a further Rs. 500 million bringing the capital infusion to Rs. 1.2 billion. 

MBSL said it has entered into an investment agreement on 31 Dec. 2018 with a strategic investor for the purpose of capital infusion of Rs. 700 million and MBSL will invest the balance Rs. 500 million. 

The relevant approval from IRCSL has been obtained and the MBSL and strategic investor intends to conclude the proposed capital infusion of Rs. 1.2 billion in insurance venture before 31 January this year.

As at 31 December 2017, MBSL has made an impairment provision of 95.9% of the investment in the insurance subsidiary. MBSL shares are currently in the Watch List by the CSE as the FY17 audited accounts contained an emphasis of matter on going concern pertaining to insurance subsidiary.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Wounding the social psyche

Friday, 19 April 2019

In this article, I intend to discuss the serious wounds inflicted on the psyche of Sri Lankan society, which have not received adequate attention, but need immediate cure, for they might develop into a dangerous cancer if not treated without further


No more stones to break Sri Lankan bones

Friday, 19 April 2019

Trial by fire is not a new ordeal to Christian community. It predates Notre Dame and Nazism by millennia. In fact, a decade or so before Nero torched believers to light Roman avenues, Jewish religious leaders put Jesus-followers to the test as the Ch


What 5G could be to Game of Thrones (and vice versa)

Friday, 19 April 2019

We will be hearing a lot about these two seemingly unrelated topics this month. In a hurriedly but meticulously organised event, Dialog Axiata recently demonstrated 5G applications for the first time in South Asia. 5G will be commercially available


On time – Only for a week! A must-change!

Thursday, 18 April 2019

We are in April and the month where we witness the declaration of a new year as per our traditional practice. It is that period of time when a huge majority of our population, which certainly can be counted in millions, intends to act in unison and q


Columnists More