Softlogic Holdings PLC, which made forays into different sectors in recent years, is now eyeing Capital Reach Holdings Ltd (CRHL), according to sources close to both firms. “Softlogic is currently talking to CRHL to acquire its controlling stake. Since CRHL has a leasing arm - Capital Reach Leasing PLC, Softlogic sees value in the company, as they can leverage their other businesses with this,” a source close to Softlogic told the Business Times.
Analysts said that CRHL’s intent to buy back a 56.25% stake in the company from Asia Capital PLC (ACap) may be connected to this transaction. “It appears that this transaction will be done only if CRHL repurchases what ACap holds in CRHL,” one analyst said. Early this month, ACap said that CRHL management had offered to buy ACap’s stake in CRHL for Rs. 299 million.
ACap has said the transaction will be concluded by August 20. Acap also said that CRHL has agreed to sell its 67.03% in subsidiary, Capital Reach Credit Ltd to ACap for Rs. 76 million. “Softlogic is interested in controlling the entity. This maybe why CRHL is trying to buy it back and conclude a separate transaction with Softlogic,” an analyst said. CRHL management could not be reached for comment.
Softlogic a company which started as an IT firm is now into healthcare, furniture, telecommunications, consumer electronics, automobiles, office automation, etc. Ashok Pathirage, Chairman Softlogic was unavailable for comment as he was overseas. |
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