Softlogic Capital to acquire majority shares of Abans Finance for Rs.995mn
▪ Mandatory offer to be announced at Rs.30.10 per share ▪ Abans says exited Abans Finance with capital gain ▪ Post mandatory offer, Abans Finance to be merged with Softlogic Finance
Softlogic Capital PLC, the financial sector holding company of the diversified Softlogic Holdings PLC yesterday said it has agreed to buy the majority stake of Abans Finance PLC from Abans PLC in a Rs.995 million deal.
Abans PLC holds 33 million shares or 49.67 percent of Abans Finance PLC.
Softlogic Capital said it would pay Rs.30.10 per share and would announce a mandatory offer to the minority shareholders of Abans Finance in terms of the Takeovers and Mergers Code 1995 as amended in 2003.
Abans Finance had an asset base of Rs.8.5 billion as at endjune 2020 and a deposit base of little over Rs.5 billion. The company’s net asset per share was Rs.24.08.
Abans Finance share closed at Rs.29 yesterday, up Rs.8.50 or 41.46 percent.
Abans PLC in a media statement said it is divesting its stake in Abans Finance to Softlogic Capital with a capital gain and added that the sale price, at which the mandatory offer will be announced, reflects a premium of 47 percent to the recently traded price of Rs.20.50.
Meanwhile, Softlogic Capital said soon after the completion of the mandatory offer, Abans Finance will be merged with Softlogic Finance PLC, of which Softlogic Capital has a shareholding of 72.94 percent, with Softlogic Finance being the surviving entity.
Softlogic Capital also said those Abans Finance PLC minority shareholders who don’t accept the mandatory offer will be given 11 shares in Softlogic Finance for every 6 shares held at Abans Finance following the amalgamation. “This ratio has been computed on the basis of the respective net asset values of the two companies as per the latest published quarterly financial statement as at June 30, 2020,” Softlogic Capital said in a stock market filing. The deal is subject to regulatory approval from the Central Bank of Sri Lanka, Securities and Exchange Commission and the Colombo Stock Exchange.