FMO sells stake in Sri Lanka’s LOLC micro lender

ECONOMYNEXT – Sri Lanka’s LOLC Finance PLC (LOFC), acquired 100 percent in micro lender LOLC Micro Credit for 12.3 billion rupees, at 156.18 a share, stock exchange filing said.

LOFC and LOLC Micro Credit are subsidiaries of listed Lanka Orix Leasing Company PLC (LOLC).

LOFC Finance acquired 80 percent of LOLC Micro Credit from the parent company for 9.8 billion rupees, making it a related party transaction disclosed to the Colombo Stock Exchange.

LOFC bought the balance 20 percent from FMO, or Dutch Development Bank, for 2.5 billion rupees.

Parent company LOLC was trading three rupees lower at 117 rupees. LOFC was unchanged at 3.70 rupees.

LOLC said related party transactions amounted to 16.7 billion rupees for the current financial year, excluding this transaction.

The Related Party Transactions Review Committee in a filing to the stock exchange said he transaction was on normal commercial terms, and not prejudicial to the interests of the company and minority shareholders. (COLOMBO, February 01, 2018)

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