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.
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.
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 28th 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.