Sri Lanka’s Dialog Finance seeks fin-tech tie up
ECONOMYNEXT – Dialog Finance, the fin-tech unit of Sri Lanka’s top mobile phone operator Dialog Axiata, said it aims to partner with a digital finance service provider or a fin-tech expert to expand its fin-tech business.
The intention of the finance company, formerly known as Colombo Trust Finance, was made known in a note to shareholders on its rights issue.
Dialog Finance will make a rights issue of 19 million shares at 40 rupees each to raise 764 million rupees to increase its core capital and comply with the Central Bank’s minimum core capital rule.
It also aims to sell at least a 10 percent stake in the firm, now closely held by parent Dialog Axiata, to comply with the minimum public float rule for which it has got an extension till August 2019.
“The company is currently in the process of restructuring its business to establish the fintech model with the intention of partnering with a digital finance service provider or a fintech expert to enable an aggressive scale up, which will facilitate the sell down of Dialog’s stake and increase the public holding of the company,” the statement said.
(COLOMBO, February 27, 2019-SB)