People’s Leasing to acquire 33% stake in First Capital Holdings

People’s Leasing & Finance PLC (PLC) has announced the proposed acquisition of a 33 per cent stake in First Capital Holdings PLC(FCH), signaling the beginning of a new chapter of business growth through horizontal integration and diversification as a powerhouse of growth in the financial sector.

With the proposed acquisition which is subject to the approval of Central Bank of Sri Lanka and all other regulatory authorities applicable, PLC will be expanding their product and service offerings, resulting in enhanced revenue and profits streams that will benefit from FCHs’ expertise in areas such as Investment Banking, Wealth Management, and Securities Trading which are likely to be new areas of growth for PLC. The move will also enhance PLC’s competitive edge and consolidate its position in the financial services sector, the company said in a media release.

“As one of Sri Lanka’s largest non-banking financial institutions, Peoples Leasing & Finance PLC has the distinction of being a leader in leasing and related financial services. The acquisition will strengthen the company’s offering in diversified financial services, enhancing the potential to reaffirm a firm foothold in the financial sector through a unique Public Private Partnership”, says Shamindra Marcelline, CEO/ GM – People’s Leasing & Finance PLC. “This move will strengthen combined synergies and enable PLC to access expertise in Investment Banking, Capital Markets and Wealth Management.

Managing Director/ Chief Executive Officer of First Capital Holdings PLC, Dilshan Wirasekara said: “People's Leasing  & Finance PLC and First Capital Holdings PLC have set the path for strategic partnership and believe that the synergies of both organisations will bring core competencies together for accelerated growth of the financial services sector. PLC’s strong retail footprint will give us access to reach a wider audience and thereby fuel our vision of “improving the lives of all Sri Lankans through financial solutions”.

FCH's Asset Management business will support investing excess funds in a range of asset classes designed to provide attractive returns whilst managing risk. Furthermore, PLC’s collaboration with Lanka Alliance Finance Ltd in Bangladesh is likely to open the doors to FCH to initiate a footprint in that country in the area of investment banking and capital markets, opening doors to new frontiers of expansion outside Sri Lanka. FCH will also benefit from being associated with a State Owned Enterprise (SOE) with a vibrant market presence, which gives them access to unique resources and strengths.