10 June 2023 04:30 am Views - 463
First Capital Holdings (FCH) shared yesterday it is upbeat about its prospects of expanding its footprint in the South Asia region, as its recent part acquisition has opened new avenues for venturing.
In a statement to the media, FCH said that collaboration of People’s Leasing & Finance (PLC) with Lanka Alliance Finance Ltd in Bangladesh is likely to open doors for the entity to initiate a footprint in that country.
It said doors to new frontiers outside Sri Lanka would be opened in the area of investment banking and capital markets.
FCH will also benefit from being associated with a state-owned enterprise with a vibrant market presence, which gives them access to unique resources and strengths. Further, FCH stated that through its corporate finance arm of FCH,
funds could be better managed to maximise returns to its clients while minimising risk exposure through the expertise stemming from FCH’s asset management business.
“This will enable PLC to optimise funding and asset-liability management, thereby expanding the footprint in the monetary market and consolidating financial stability,” said First Capital Holdings PLC Managing Director/Chief Executive Officer Dilshan Wirasekara, commenting on the strategic investment.
The asset management business of FCH will also support investing excess funds in a range of asset classes designed to provide attractive returns whilst managing risk, he noted.
Yesterday PLC announced the proposed acquisition of a 33 percent stake in FCH, signalling the beginning of a new chapter of business growth through horizontal integration and diversification as a powerhouse of growth in the financial sector. According to a stock market disclosure by PLC, under the share purchase agreement entered into yesterday, it will acquire 133.6 million FCH shares from Janashakthi Limited, which constitute 33 percent, at a consideration of Rs.37.10 per share.
With the proposed acquisition, which is subject to the approval of the Central Bank of Sri Lanka and all other regulatory authorities applicable, PLC will be expanding its product and service offerings, resulting in enhanced revenue and profits streams that will benefit from FCH’s 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.