First Capital owners say in talks with investor to sell shares

Dunamis Capital PLC yesterday said they are engaged in preliminary discussions with a prospective investor for an investment in the shares of First Capital Holdings PLC.
Dunamis Capital is the controlling shareholder of First Capital Holdings.

Unusual trading in the shares of First Capital Holdings PLC was seen on July 24 and market speculation was rife of a possible acquisition of the company.
The First Capital Holdings share closed Rs.2.90 or 7.44 percent up yesterday, at Rs.41.90.

“However, the board wishes to strongly emphasise that the discussions are at a preliminary stage. Any final decision to proceed with the transaction will be subject to several conditions.
These include the prospective investor completing a satisfactory due diligence, obtaining corporate approvals and being able to arrange financing for the purchase,” Dunamis Capital said in a stock exchange filing.

First Capital Holdings controls the primary dealer First Capital Treasuries PLC and has interests in corporate finance, asset management and stockbroking. 

Janashakthi Insurance-fame Schaffter family owns nearly 83 percent of First Capital Holdings through Dunamis and Janashakthi PLC.

First Capital Holdings recorded a profit after tax of Rs.12 million for the year ended March 31, 2019, compared to Rs.1.97 billion in the previous year, which included recognition of a deferred tax asset amounting to Rs.902 million.  The overall group performance was impacted by the market conditions that changed due to the political uncertainties towards the end of the year 2018.