Dialog Axiata PLC (‘Dialog’), Sri Lanka’s premier connectivity provider, in a stock exchange filing announced that it had successfully completed the acquisition of an 80.34% stake in Colombo Trust
Finance PLC (‘CTF’) from Cargills Bank Limited at a price of Rs 28.70 per share.
CTF is a finance company licensed by the Central Bank of Sri Lanka operating under the Finance Business Act No. 42 of 2011.
The transaction which was approved by the Monetary Board of the Central Bank of Sri Lanka was completed via a crossing on the Colombo Stock Exchange (‘CSE’) on 12 September 2017 at atransaction value of Rs 1072 million.
In accordance with the Takeovers and Mergers Code of the Securities and Exchange Commission, Dialog will proceed to announce a mandatory offer to the remaining shareholders of CTF.
The acquisition of CTF by Dialog Axiata PLC, will facilitate the expansion of the scope of operations of the Dialog Group in to the sphere of mainstream Digital Financial Services. Dialog aims to bring together the realms of advanced digital connectivity and cutting edge financial technology (fintech) to deliver a revolutionary suite of products and services which will expand the vistas of financial inclusion in Sri Lanka.
Significant within the envisaged inclusion drive, will be a focus on financing solutions aimed at increasing the affordability and accelerating the adoption of digital devices and services by a wide spectrum of consumers and businesses.
Dialog Axiata entered the sphere of financial services in 2012 when it was licensed by the Central Bank of Sri Lanka to operate the country’s first Mobile Payment Service eZ Cash. Now in its fifth year of operation, eZ Cash has over the years secured over 2.8 million mobile payment subscribers from across Etisalat Hutch and Dialog Mobile networks.
Dialog’s latest acquisition CTF, will be operated alongside the Digital Services Portfolio of the Dialog Group. Other digital ventures of the Dialog Group include Sri Lanka’s leading e-commerce portal WoW.lk operated by Digital Commerce Lanka, Doc.lk operated by Digital Health (Pvt.) Ltd and the country’s leading digital education service Guru.lk operated by Headstart Pvt Ltd.
Dialog Axiata PLC Director/Group Chief Executive Supun Weerasinghe said, “Dialog envisages that its foray into financial services would help accelerate Sri Lanka’s drive towards adoption of Digital Financial Services by encouraging digital savings and increase access to financial services for all segments of society. Dialog would also leverage this acquisition to drive down the entry barriers for adoption of smart technology and devices through inclusive financing solutions.”
NDB Investment Bank acted as financial advisors to the acquisition, whilst M/s FJ&G de Saram acted as legal advisors to the transaction.
Sources : dailynews