Assetline to acquire Lisvin Investments; TKS to acquire Asian Finance
The Monetary Board of the Central Bank (CB) has given formal approval to Assetline Leasing Company Ltd to acquire Lisvin Investments Ltd and TKS Finance Ltd to acquire Asian Finance Ltd under the ongoing consolidation process of financial institutions.In an updating of this process, the CB said the consolidation process had made progress as planned, and during June 2014, almost all banks and finance and leasing companies (NBFIs) had finalized their consolidation plans and submitted their proposed merger/acquisition plans to the CB. These plans will now be reviewed by the regulator with a view to facilitating the respective companies to proceed further.
The statement said that the banks and NBFIs, while negotiating with the shortlisted merger/acquisition counterparts, also maintained a close dialogue with the special unit of the CB. In addition, as requested by the CB, the panel of audit firms continued their transaction management activities to facilitate the negotiation process between financial institutions in an independent manner.
“Work relating to the mergers that have already commenced, i.e., DFCC Bank and the National Development Bank PLC, and Merchant Bank of Sri Lanka PLC, MBSL Savings Bank Ltd. and MCSL Financial Services Ltd. continued to progress with the assistance of external consultants, where necessary, the Bank said, adding that several NBFIs falling within the same group also continued the consolidation process while initial approval was granted for the mergers of a few other NBFIs as well.The Monetary Board also approved providing funding support to certain NBFIs through the Sri Lanka Deposit Insurance and Liquidity Support Scheme in order to further strengthen the financial condition of those entities. “Such support is expected to enable these entities to attract suitable merger/acquisition counterparts or strategic investors,” the statement said.
Guidelines on taxation in terms of the Inland Revenue (Amendment) Act No 8 of 2014 and Value Added Tax (Amendment) Act No 7 of 2014 on the tax incentives to promote the consolidation process were also finalized, and discussions with the Ministry of Finance and Planning are currently underway. These guidelines are expected to be released to banks and NBFIs shortly.
During the month, the CB continued to maintain a close dialogue with all stakeholders of the process, including having a discussion with the representatives of the Ceylon Bank Employees’ Union.
| TKS Group’s two finance units merge as one unit under Central Bank guidelines
The TKS Group, in line with the Central Bank of Sri Lanka’s (CBSL) initiative for industry wide consolidation to strengthen the country’s financial sector, on Monday announced the integration of two of its finance sector holdings, TKS Finance Ltd (TKSF) and Asian Finance Ltd (AFL). The new merged entity shall operate as TKS Finance Limited, whereby the consolidated company will continue to offer the highest levels of service to the clientele of both AFL and TKSF, upon finalization of the exercise, the company said in a media release. Rasika Kaluarachchi, who is currently the Chief Executive Officer (CEO) of TKSF, has been designated as the CEO of the merged entity. TKS’s unification bid has received the consent of the Board of Directors and shareholders of TKSF and AFL. The CBSL too has approved the modality of this move. Commenting on the move, Dato Seri Abdul Azim Zabidi, Deputy Chairman of TKSF said, “The consolidation of the finance business into a single merged company will help the TKS Group better leverage the strengths of both entities and deliver greater value to our customers. This is part of our long term strategy to grow our presence and establish ourselves as one of the foremost players in Sri Lanka’s finance industry.” The Board of Directors of TKS Finance Ltd comprises Dato’ Seri Tiong King Sing, JP (Chairman), Dato’ Seri Abdul Azim Zabidi (Deputy Chairman), Ling Chui Zhen (Executive Director), Lee Chong Pa (Executive Director), T. Dharmarajah (Director), Dr. S. H. A. M. Abeyratne (Director) and I. D. Weerasena (Director). |