People’s Leasing & Finance to acquire 33% of First Capital Holdings for Rs.4.95bn

People’s Leasing & Finance PLC yesterday 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.

According to a stock market disclosure by People’s Leasing & Finance, under the share purchase agreement entered into yesterday, it will acquire 133.6 million First Capital shares from Janashakthi Limited, which constitute to 33 percent, at a consideration of Rs.37.10 per share.

The transaction is subject to Central Bank and other regulatory approvals.

If the deal goes through, People’s Leasing & Finance PLC under the Take-overs and Mergers Code will announce a mandatory offer to the remaining shareholders of First Capital, excluding the balance shares held by Janashakthi Limited, who would not be accepting the offer.

Janashakthi Limited owns 83 percent of the issued shares of First Capital.

First Capital share closed at Rs.34.10 yesterday, down 30 cents or 0.87 percent.

As at March 31, 2023, the net asset per share of First Capital was Rs.15.04 up from Rs.10.00 a year ago.

First Capital is a primary dealer of government securities and also has interests in stock broking and wealth management.

People’s Bank is the majority shareholder of People’s Leasing & Finance with 75 percent stake. Employees’ Provident Fund has 5.43 percent stake in the company as the second single largest shareholder.