Sri Lanka: Thai Finance Company Acquires 29.99% of Commercial Credit

Dec 2016
Sri Lanka, December, 11 2016 - Group Lease Public Company Limited (GLPCL), a digital finance company listed on the Stock Exchange of Thailand (SET), acquired a 29.99% stake of Commercial Credit and Finance Plc (CCF) for USD 70 million at the Colombo Bourse last week. The transaction valued at over Rs. 10.56 billion is one of the highest recorded at the CSE, a company official said.

In the same exercise, BG Investments (Pvt.) Ltd and related companies along with CCF sold their 100% stake in microfinance subsidiary in Myanmar - BG Microfinance Myanmar Co Ltd (BGMM) - for a consideration of USD 8.0m to GLPCL. The CCF stake of 28.1% was valued at USD 2.284 million and works out to Rs. 330 million at the current exchange rate of Rs./USD 146.85. CCF will book a profit of Rs. 277.21 million before taxes on the transaction.

“First announced in September this year, the former is a historical transaction in terms of size. Two years ago, the investment of Rs. 1.68 billion (US$12.8 million equivalent) by Creation Investments Sri Lanka LLC was the biggest foreign investment into a finance company. Commercial Credit is very happy to partner with GLPCL where we see a long term win-win partnership through this investment with many opportunities for capital raising, synergies and growth,” said Commercial Credit’s Chief Operating Officer Rajiv Casie Chitty.

GL’s Chairman/CEO Mitsuji Konoshita sees this decision to buy 29.99% of Commercial Credit and Finance Plc (CCF) as one which will further enhance the strategic partnership between the two groups.

“We look to combine our efficient digital finance platform with CCF’s very successful track record in the field of finance, to grow our businesses in all markets where we are and will be present, while CCF’s need to access to capital can easily be met by our capability to raise funds internationally,” he said.

The acquisition valued at USD 70 million marks GL’s first major expansion outside of the ASEAN region. From its home base in Thailand, GL has expanded successfully into Cambodia, Laos, Indonesia and, more recently, Myanmar through BGMM.

With a history of 34 years, Commercial Credit and Finance PLC is one of Sri Lanka’s leading finance companies with a total asset base of Rs. 70 billion as at March 31, 2016. It is listed on the Colombo Stock Exchange.

CCF offers a wide portfolio of products and services including Fixed Deposits, Savings, Leasing, Hire Purchase, Education Loans, Real Estate, Term Loans, Gold Loans, Revolving Business Loans, Factoring, and Microfinance products which are offered in over 120 locations across the country. Upgraded branch facilities and cutting-edge marketing strategies continue to garner the Company a rapidly expanding and loyal client network.

Source : Sunday Observer

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