Sri Lanka’s LOLC inks deal to sell Cambodian unit to Korea’s Kookmin
ECONOMYNEXT- Sri Lanka’s LOLC Holdings said it has signed two agreements to sell its Cambodian sub-subsidiary PRASAC to Korea’s Kookmin Bank for 603 million US dollars.
Kookmin Bank, the largest commercial bank in South Korea, has signed a share purchase agreement and shareholders agreement with LOLC Holdings, subject to final approval from the National Bank of Cambodia and the Financial Services Commission of Republic of South Korea, the Sri Lankan firm said in a stock market disclosure.
PRASAC is the largest microfinance institution in Cambodia, in which LOLC’s Singaporean subsidiary LOLC International Private Limited holds a 70 percent stake.
LOLC will sell the 70 percent ownership in PRASAC in two tranches; an immediate 422 million rupees and the balance in 2022.
The group also owns LOLC Cambodia Plc, the fourth largest microfinance firm in the South East Asian nation.
PRASAC was LOLC’s first foreign investment in 2007. The group also operates microfinance firms in Myanmmar, Philippines, Indonesia, Pakistan, Zambia and Nigeria.
LOLC’s share price had risen 179 rupees by December 30, from 113 rupees a share before the deal was announced in early-December. The share price has fallen to 169 rupees over the past week. (Colombo/Jan06/2020)