HNB signs deal to buy 51% of Prime Grameen Microfinance

Wednesday, 1 October 2014 02:56 - - {{hitsCtrl.values.hits}}

Further to the announcement made in early August 2014, HNB, a pioneer in microfinance in Sri Lanka, yesterday entered into a shareholder agreement with regard to the acquisition of a stake of 51% of voting rights in Prime Grameen Micro Finance Ltd.

The agreement was signed subsequent to the successful completion of a detailed due diligence and the transaction is expected to be concluded once regulatory clearance is obtained. This strategic acquisition will complement HNB’s investments in insurance and capital markets to benefit as a Group from the growth prospects of the country. HNB Managing Director/CEO Jonathan Alles commenting on the proposed investment said: “Micro finance will play a key role in the development of rural Sri Lanka and in distributing the dividend of economic growth more evenly among society; as a premier local bank we take pride in participating in this development process.” Alles and HNB PLC Chief Operating Officer Dilshan Rodrigo signed the agreement on behalf of HNB PLC while Prime Lands Ltd. Chairman B. Premalal and Prime Lands Ltd. Deputy Chairman Sandamini Perera signed on behalf of Prime Lands Ltd. Director Crysanthi Thambiah and Prime Grameen Micro Finance Ltd. Managing Director Chaminda Prabath signed on behalf of Prime Grameen Micro Finance Ltd.