Ascot to sell 25% stake in Arrenga Capital

Thursday, 23 February 2012 00:22 - - {{hitsCtrl.values.hits}}

Ascot Holdings Plc has entered into a share sale and purchase agreement with Softlogic Capital to divest its 25% stake in Arrenga Capital.

This is in line with Softlogic Capital’s announcement on Monday that it intends buying the entirety of shareholding of Arrenga Capital amounting to 8 million shares for Rs. 200 million after a due diligence study and regulatory approval.

Arrenga Capital is one of the new entrants to stock broking. Apart from Ascot Holdings, the other shareholders of the broking firm are Laxi Partners UK (25%), Sarinda Unamboowe (20%), Ranil Pathirana (20%) and Nanda Nair (10%). Despite the announcement of the planned sale and capital gains, Ascot stock price yesterday dipped b Rs. 7.30 to close at Rs. 156.90 whilst it hit an intra-day high of Rs. 170 and around 326,000 shares traded.

Softlogic Capital which gained by 20% to Rs. 19.90 on Monday closed down by 20 cents to Rs. 19.70 yesterday.

Softlogic Capital saw group revenue in the six months to September 2011 increase 108% to Rs.712.6 million as Profit After tax grew 4.5 times to Rs.219 million.