Softlogic Capital PLC has agreed to acquire 33,063,877 ordinary shares amounting to 49.67% of the issued ordinary shares of Abans Finance PLC from its major shareholder Abans PLC at a price of Rs.30.10 per share subject to the recipient of all regulatory approvals which are required for the acquisition.

In a Stock Exchange Filing, Softlogic Holding PLC, the parent company of Softlogic Capital PLC further stated that Softlogic Capital would make a mandatory offer to the minority shareholders of Abans Finance PLC subsequent to the aforesaid acquisition in terms of the Take-overs and Mergers Code 1995 as amended in 2003.

After the acquisition and mandatory offer referred to aforesaid, Softlogic Capital PLC would have a shareholding in excess of 49.67% in Abans Finance PLC and a shareholding in excess of 72.94% in Softlogic Finance PLC.

Immediately after the mandatory offer is completed and in accordance with the financial sector consolidation plan initiated by the Central Bank of Sri Lanka in 2014, Softlogic Capital PLC intends to initiate a process for the amalgamation of  Abans Finance PLC into Softlogic Finance PLC with Softlogic Finance PLC being the surviving entity.

This amalgamation is subject to receiving all regulatory approvals for the same.

The minority shareholders of Abans Finance PLC would be given 11 ordinary shares of Softlogic Finance PLC for every 6 share which they hold in Abans Finance PLC.

The ratio has been computed on the basis of the respective net asset values of the two companies as per the latest published quarterly financial statements as at 30 June 2020.

Meanwhile issuing a statement in this regard, Abans PLC stated the following;

"In meeting the aspirations of the Government of Sri Lanka and the Central Bank of Sri Lanka to develop a stronger financial system, Abans PLC, the controlling shareholder of Abans Finance PLC, will be selling its stake in the finance company to Softlogic Capital PLC, the holding company of Softlogic Finance PLC, with a capital gain. The Boards of both Abans PLC and Softlogic Capital PLC approved the proposed transaction on the 29th of September 2020."

"Shareholders of Abans Finance PLC will have the option to accept cash at a price of LKR 30.1 through the mandatory offer for every share held in Abans Finance PLC, which reflects a premium of 47% to the recently traded price of LKR 20.50 as of 28^th September 2020 or accept 11 shares in Softlogic Finance PLC for every 6 shares held at Abans Finance PLC on the subsequent amalgamation. This transaction is subject to obtaining all necessary shareholder approvals and regulatory approvals from Central Bank of Sri Lanka, Colombo Stock Exchange, and the Securities and Exchange Commission of Sri Lanka," it said.

Abans Finance PLC was established as a registered Finance Leasing company in 2006. The principal lines of business include finance leasing, mortgage loans, personal loans, and acceptance of time and savings deposits. The company currently operates across island through a network of branches and customer service centres. Softlogic Finance PLC was established as a registered Finance Leasing company in 1999. The Company operates through a branch network of 36 locations and offers leasing, mortgage loans, personal loans, gold loans and acceptance of time and savings deposits.