Janashakthi PLC acquires 31% stake in Dunamis Capital
View(s):Janashakthi PLC (JPLC) has acquired a 31.14 per cent stake in Dunamis Capital PLC, the holding company of First Capital PLC and Kelsey Developments PLC, for Rs. 1.4 billion. The sellers were Next Ventures Ltd and Janashakthi director Dinesh Schaffter.
The transaction will result in the consolidation of all of the listed holdings of the Schaffter family under one entity, making Janashakthi PLC the parent company of all the family-controlled businesses, the company said in a media release.
Speaking on behalf of the Schaffter family, CEO of Janashakthi PLC, Ramesh Schaffter, said that the restructure brings about a return to the status quo that existed 12 years ago.
“The transaction will function as a launch pad for a range of strategic partnerships in future, which the company is confident it will attract, given its current structure and growth prospects. The fusion of multidimensional expertise within the finance industry via its insurance, investment banking, asset management, stock brokering and non-banking finance companies consolidates JPLC as a leading financial services conglomerate in the country.”
Consequent to the acquisition, Janashakthi PLC will make a mandatory offer to all other shareholders of Dunamis Capital. With the undertaking from Dinesh Schaffter and Manjula Mathews to accept the mandatory offer, upon conclusion of the mandatory offer, JPLC is expected to have a shareholding in excess of 90 per cent in Dunamis Capital. The transaction will result in Dunamis Capital along with First Capital and Kelsey Developments becoming subsidiaries of Janashakthi PLC.
First Capital Holdings is the investment banking arm of the Dunamis Capital Group and consists of First Capital Treasuries, First Capital Asset Management, First Capital Equities, First Capital Markets, and First Capital Ltd. Kelsey Developments is the property development arm of the Dunamis Group.