ComBank’s Commercial Leasing stake up for sale

The Commercial Bank wants to sell off its stake in Commercial Leasing and is in talks with some interested venture capital firms.

The bank has already transferred its 30 percent stake in Commercial Leasing to its trading portfolio indicating its desire to divest from the leasing company.

“The bank has an ‘in-house developed’ lease asset base; in their view it did not have any synergies from Commercial Leasing other than the return in the form of dividends,” a Commercial Bank source told The Sunday Times FT.

He said that the Bank is currently looking for a buyer to dispose the shares at an attractive price above the market. “They are quoting Rs.175 for a Rs.140 share and it is doubtful that they will find a buyer,” a stock market analyst said.

Industry sources said that Singer Ltd which has a 30 percent stake in the company is also working with Commercial Bank to sell its stake but Chemanex Ltd which holds 36 percent has not indicated such a move as yet.

“Sixty percent of Chemanex’s profits come from Commercial Leasing – so they are undecided as yet,” one source said.