Wednesday 30 July 2014

Indian company to buy Asia Asset Finance for Rs 1B York Street Partners to buy Asia Securities for Rs 600M

By Ravi Ladduwahetty

Ceylon FT: An Indian financed company is planning to buy a Sri Lankan finance company for Rs 1 billion sources said.


One of India's largest finance companies, Muthott Finance, which has over 1,000 braches scattered over the subcontinent was tipped to buy Asia Asset Finance Co. Ltd., a subsidiary of the Asia Capital PLC Group for over Rs 1 billion at Rs 2 per share, sources said.

They have also a stated capital of 945.1 million shares, which comprise 559.4 million voting shares. However, the board of directors of Asia Asset Finance announced on 17 July that it will further increase the stated capital by another Rs 447 million with a Rights Issue for one share for every two shares held at Rs 1.60 per share. The total number of shares that will be issued with the Rights would be 279.7 million shares.

It would also mean that the Indian acquisition would be after the Rights Issue.

Meanwhile, York Street Partners, a corporate outfit, which has been set up four young corporate executives and funded by the cofounders and now divested Expo Lanka Group, are to buy Asia Securities for Rs 600 million, market sources told Ceylon FT.

York Street Partners comprises Sujendra Mather, Nayana Mawilamada and Jayamin Pelpola who have all worked at international levels with J.P. Morgan and Goldman Sachs. York Street Partners are funded by the Osman Kassim family who founded the Expo Lanka Holdings PLC Group and who divested 30% of the Group to Japan's Sagawa Group for Rs 6 billion. It is also leant that the Asia Securities acquisition is also coming from the proceeds of the sale of Expo Lanka.

Asia Securities, has been operating at a profit from 2012 and the owners are wanting to sell it from that time due to the cash rich nature of the company.

However, Asia Securities CEO and Acting Chairman Stephan Abeysinghe and former Expo Lanka CEO Hanif Yusuf were not available for comment despite repeated attempts to contact them.
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