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LOLC forms LOLC Ceylon Holdings Ltd.  

13 Jan 2021

LOLC Holdings PLC yesterday (12) announced the formation of LOLC Ceylon Holdings Ltd., a fully owned subsidiary of LOLC Holdings PLC which will operate as a platform to enable potential investors to acquire minority stake in the finance companies it owns. In a corporate disclosure to the Colombo Stock Exchange (CSE), LOLC yesterday expressed its plans to list LOLC Ceylon at the CSE going forward. After the listing of LOLC Ceylon, the shares owned by LOLC in LOLC Finance PLC amounting to 44.79%, shares owned in Commercial Leasing and Finance PLC amounting to 98.92%, and the shares owned in LOLC Development Finance PLC amounting to 55.55%, are to be transferred to LOLC Ceylon.   LOLC noted that as this is an internal group restructuring, the transaction will be executed at the prevailing market prices at the date of the transfer as an off-the-floor transaction. LOLC stated that it believes that these large-scale foreign investors have the capabilities to support the financial companies that come under the purview of the LOLC Holdings, to grow further and offer better service to their customers by introducing latest technologies, technical knowhow, and providing training to its employees. The company has obtained approval in principle for the aforementioned transfers from the Securities and Exchange Commission of Sri Lanka. Furthermore, the Department of Supervision of Non-Bank Financial Institutions of the Central Bank of Sri Lanka too has confirmed that they have no objection on the proposed transfer. Besides a range of financial products and services, its portfolio includes leisure, plantations, agri-inputs, renewable energy, construction, manufacturing and trading, and other strategic investments. LOLC also have financial services investments in Cambodia, Myanmar, Pakistan, Indonesia, the Philippines, Nigeria, and Zambia; business operations in Maldives and Sierra Leone as well as corporate offices in Singapore, the UAE, and Mauritius. In the financial year 2019/2020, LOLC Holdings recorded a marginal increase in Profit After Tax (PAT) to reach Rs. 19.8 billion compared to Rs. 19.64 billion in the previous year. Eighty percent of the company’s Profit Before Tax (PBT) was derived from overseas investments, according to its annual report 2019/2020.


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