Cargills Bank buys smaller finance company
View(s):Sri Lanka’s Cargills Bank, which opened recently, has bought a majority stake of 73.39 per cent in finance company Capital Alliance Finance PLC at a price ranging from Rs. 15.40 to Rs. 15.50 per share, the bank announced on Tuesday.
The deal is in line with the Central Bank’s financial consolidation roadmap where smaller finance companies unable to raise capital to stipulated levels must merge with other larger finance companies or banks, or be fully sold.
Cargills Bank, part of the Ceylon Theatres conglomerate, said it would make a mandatory offer to buy the balance shares under the Takeovers and Mergers Code which stipulates that any purchase of over 30 per cent in a company must be followed by a mandatoy offer to buy the balance shares.