Sterling Capital completes Rs1.36bn takeover of Sri Lanka’s Peopleâ€™s Merchant Finance
ECONOMYNEXT- Sterling Capital Investments (Pvt.) Ltd., a big exporter of Japanese vehicles to Sri Lanka, has completed its 1.36 billion rupee takeover of People’s Merchant Finance (PMF) through a private placement of shares and a rights issue.
The capital infusion by Sterling Capital at 9.50 rupees a share gives it a stake of 67.9 percent in People’s Merchant Finance, a stock exchange filing said.
NDB Investment Bank, which was the sole advisor to the deal, said Sterling Capital’s investment was partly through a 160 million rupee private placement and the rest by subscribing to 126,384,052 ordinary voting shares of PMF by way of a rights issue.
People’s Merchant Finance struck a deal with Sterling Capital after dropping a possible merge with People’s Leasing and Finance in January,
Its investment triggers the Mandatory Offer requirements of the stock exchange about which the company said it will make an announcement soon.
Sterling Capital’s investment raises PMF’s core capital over the minimum of 1.5 billion rupees stipulated by the Central Bank.
(COLOMBO 9 May 2019-SB)