Sri Lanka’s Commercial Credit soars after premium deal with Thai firm
ECONOMYNEXT – Sri Lanka’s Commercial Credit and Finance soared over 30 percent in morning trade Tuesday after a Thailand based group announced that it will buy 29.99 percent of the firm from key shareholders at premium.
Commercial Credita rose to 71 rupees, in morning trade, up 16.90 rupees after Thailand’s Group Lease Holdings said it will buyout key shareholders at 111 rupees or 10.5 billion rupees, which is a at a premium to its net assets and sector earnings multiples.
A unit of Commercial Credit in Myanmar is also part of the sale.
The stock soared despite there being no offer from the Thai firm to buyout other shareholders yet. The deal is also subject regulatory approval.
In Sri Lanka a mandatory offer to buyout other shareholders is triggered at 30 percent.
Among the sellers are Creations Investments Lanka LLC, a Delaware based firm connected to, Commercial Credit non-executive director Patrick Fisher.
Fisher is a private equity investor who bought into Commercial Credit several years ago and raised his stake.
Other sellers were BG Investments and Stephen L. Lafrance Jr, who came on to the shareholders list in the year to March 31.
Commercial Credit has been growing its asset book at above industry rates in recent years. (Colombo/Oct04/2016)