Abans to sell finance company stake to Softlogic Capital

Wednesday, 30 September 2020 00:21 - - {{hitsCtrl.values.hits}}

In meeting the aspirations of the Government and the Central Bank to develop a stronger financial system, Abans PLC, the controlling shareholder of Abans Finance PLC, will be selling its stake in the finance company to Softlogic Capital PLC, the holding company of Softlogic Finance PLC, with a capital gain.

The Boards of both Abans PLC and Softlogic Capital PLC approved the proposed transaction yesterday.

Shareholders of Abans Finance PLC will have the option to accept cash at a price of Rs. 30.1 through the mandatory offer for every share held in Abans Finance PLC, which reflects a premium of 47% to the recently traded price of Rs. 20.50 as of 28 September 2020 or accept 11 shares in Softlogic Finance PLC for every 6 shares held at Abans Finance PLC on the subsequent amalgamation.

This transaction is subject to obtaining all necessary shareholder approvals and regulatory approvals from the CBSL, Colombo Stock Exchange and the Securities and Exchange Commission of Sri Lanka.

Abans Finance PLC was established as a registered Finance Leasing company in 2006. The principal lines of business include finance leasing, mortgage loans, personal loans and acceptance of time and savings deposits. The company currently operates across island through a network of branches and customer service centres.

Softlogic Finance PLC was established as a registered Finance Leasing company in 1999. The Company operates through a branch network of 36 locations and offers leasing, mortgage loans, personal loans, gold loans and acceptance of time and savings deposits.