People’s Leasing & Finance share purchase agreement with Janashakthi expires

• People’s Leasing & Finance says regulatory approvals not received before expiration of deadline
   

People’s Leasing & Finance PLC yesterday said the stipulated timelines for the completion of the transaction to acquire 33 percent of First Capital Holdings PLC held by Janashakthi Limited have lapsed.
The agreement, which was signed on June 8, 2023, would have seen People’s Leasing & Finance acquiring 133,650,000 ordinary shares held by Janashakthi Limited in First Capital Holdings.

The completion of the transaction was subject to the satisfaction of certain precedent conditions, including the receipt of regulatory approvals. However, these approvals were not received by the deadline of July 23, 2023. Additionally, the parties have not been able to agree on an extension of the timelines.
“We will keep the public duly informed of any developments in this regard, if any,” People’s Leasing & Finance said in a stock market filing.

On June 8 People’s Leasing & Finance PLC said it entered into a share purchase agreement with Janashakthi Limited to acquire 33 percent stake in First Capital Holdings PLC for a consideration of Rs.4.95 billion, paying Rs.37.10 per share.
On the day of the announcement of the deal (June 8), First Capital share closed at Rs.34.10.
The First Capital share closed at Rs.57 yesterday, up Rs.3.30 or 6.15 percent from the previous close.