LOFC announces mega Rs. 21 b share buy-back offer

Thursday, 12 June 2025 04:44 - - {{hitsCtrl.values.hits}}

LOLC Group Chairman Ishara Nanayakkara

The LOLC Finance PLC (LOFC) Board of Directors in order to optimise its shareholder value while maintaining the company’s financial stability, has resolved to repurchase 3,519,065,138 shares at Rs. 6 each in a deal worth Rs. 21.1 billion.

LOFC’s number of shares in issue is 33,079,212,299 and the buy-back shares amount to 10.6% stake.

It said the Director of the Department of Supervision of Non-Bank Financial Institutions, by a letter dated 29 May (ref no: 24/03/005/0029/015), informed the company that it may proceed with the proposal subject to compliance with all other applicable regulatory requirements.

The proposed date of commencement and closing of the offer to repurchase is from 30 June to 8 July.

The last traded price of LOFC is Rs. 6.20 and the net asset value per share as at 31 March 2025 was Rs. 4.52. Its highest share price in the quarter ended 31 March 2025 was Rs. 7.40 and the lowest was Rs. 5.30, before closing at Rs. 6.

LOLC Ceylon Holdings owns 88.21% stake in LOFC, along with LOLC Asia Ltd., (5.72%) and LOLC Ceylon Holdings (2.75%).

The public holding is 3.31% held by 17,450 shareholders. Leading minority shareholders include Rayynor Silva’s Phantom Investments (909.5 million shares) and Andaradeniya Estate (108.4 million shares).

In its FY25 interim results, LOFC said the company was not compliant with the minimum public holding requirement. This arose consequent to the merger with subsidiaries Commercial Leasing & Finance PLC and LOLC Development Finance PLC. The Board of Directors of the company is in the process of evaluating options in this regard, it added.