LOLC sells 62.3% stake in finance company to Singapore subsidiary

• Deal reverses Rs. 7.3 b net foreign outflow to a positive Rs. 1.43 b

LOLC Holdings Plc has sold a 62.35% stake in its finance company to the Group's Singapore subsidiary for Rs. 8.89 billion. 

LOLC said the move was to facilitate an internal restructure of the holding of LOLC Finance Plc.The stake amounting to 2.6 billion shares was transacted at Rs. 3.40 each.

The LOLC deal accounted for 95.6% of the turnover of the Colombo stock market on Monday and boosted it to highest ever since 28 March 2018 to Rs. 9.35 billion.

The transaction also helped to reverse the year to date net foreign outflow to a positive Rs. 1.43 billion. As of Friday the net outflow was Rs. 7.29 billion.

The CSE's All Share Price Index on Monday gained 0.31% to 5,587.36, its highest close since 18 April.

The index rose 1% last week, its third consecutive weekly gain. So far this year, the index is down about 8%.