LB Finance buys Deputy Chairman’s property for Rs. 789 m for new HQ

Thursday, 29 December 2011 02:12 - - {{hitsCtrl.values.hits}}

Fastest-growing in its league, LB Finance Plc said yesterday it has acquired a property in Colombo 3 from its Deputy Chairman and controlling shareholder Dhammika Perera for Rs. 789 million to put up its headquarters.

The property located at 20, Dharmapala Mawatha, Colombo 3 (formerly a gaming palace), consists of a land of one rood and 12.8 perches and a new building with a floor area of 65,000 square feet. At present LB Finance’s main office operates in the confines of OPA at Prof. Stanley Wijesundere Mawatha, Colombo 7. The acquisition was first revealed in LB Finance’s 2010/11 Annual Report wherein it stated the company had entered into an agreement with Perera in January 2011 for the purchase of a land and building for a total consideration of Rs. 700 million on or before 15 July 2011 subject to the terms and conditions stipulated inclusive of the relevant regulatory approvals.Yesterday’s disclosure of the purchase done on Monday as opposed to July put the consideration at Rs. 789 million.

LB Finance in its filing to the CSE yesterday said the acquisition had been approved by the Central Bank on Monday in terms of the Finance Companies (Business Transactions with Directors and their Relatives) Direction No. 2 of 2007, as K. D. D. Perera who is the Executive Deputy Chairman of LFIN, is the major shareholder of Vallibel One (VONE), the holding company of LFIN.

LB Finance stock price yesterday gained by Rs. 1.70 to Rs. 139.70, after hitting an intra-day high of Rs. 142, whilst only 5,900 shares traded.

LB Finance has assets worth Rs. 34.7 billion as at September 30, 2011, up from Rs. 28.2 billion at 31 March 2011. Net asset per share is Rs. 44.42, up from Rs. 37.74.

In the first half of 2011/12 financial year, its income grew by 42% to Rs. 3.47 billion whilst operating profit crossed the Rs. 1 billion mark, reflecting a 29% growth over the first half of 2010/11 financial year. Net profit had grown by 74% to Rs. 700.1 million.

Last year gross income rose by 33% to Rs. 5.5 billion whilst net profit grew by 138% to Rs. 778 million.