A consortium of five investors including Lankem and Siddhalepa, has completed a deal to take control of MBSL Savings Bank Ltd (formerly Ceylinco Savings Bank), a subsidiary of Merchant Bank of Sri Lanka at an investment of Rs.562 million, its main promoter and investor said. The 5-member consortium led by Navara Capital Ltd with PCH Holdings - owning company of PC House-, and Ideal Motors (Pvt) Ltd as the other two investors,, will purchase 68% of voting shares (87.1 million voting shares) and 72% non-voting shares.
(100 million), Navara Capital Managing Director Harsha N De Silva said. A deposit of Rs 100 million will be made initially. In May 2009, MBSL acquired control of Ceylinco Savings Bank (CSB) which suffered a run after the Golden Key Credit Card Company, a member of the Ceylinco Group, collapsed. He revealed that they are waiting for Central Bank approval to go ahead with their business plan aimed at revitalising the MBCL Savings Bank.
This business plan and the names of the board of directors of the entity have been forwarded to the Central Bank for its endorsement. MBSL Savings Bank, a Licensed Specialised Bank (LSB), registered under the Central Bank will be listed in the stock exchange by the end of this year as the consortium needs some time to restore the entity, Mr de Silva said. Commenting on the deal, MBSL Savings Bank Chairman M.R. Shah said that they have been able to resurrect the Ceylinco Savings Bank resolving the liquidity crisis. "But the turnaround of the acquisition has not been as rapid as anticipated," he added. The bank has today emerged as a dynamic and fast growing bank with a solid financial stability and a leading market share creating value for all stakeholders, he revealed. |
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