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Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyToday at 11:16 am by nihal123

» Dividend Announcements
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyYesterday at 8:10 pm by Rana

» Bull Market
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyYesterday at 7:56 pm by Backstage

» Thread for News on CSE and SL Economy
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyYesterday at 3:53 pm by Backstage

» නොතේරෙන කමට කරපු මෝඩ වැඩේ....
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptySun Feb 23, 2020 8:41 pm by Backstage

» රාගම බ්‍රවුන්ස් රෝහල ඉෂාරගෙන් හැරීට. රු. බිලියන 1.6 ක ගනුදෙනුවක්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyFri Feb 21, 2020 8:53 pm by nihal123

» SAMP.N0000 (Sampath Bank PLC)
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 20, 2020 6:47 pm by NIRMALSG

» Huge transactions expected to boost CSE in near future’
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 20, 2020 12:45 pm by Backstage

» මිනිරන්වලට දසදහස් ගුණයක වටිනාකමක් ගෙන දෙන ඉෂාර නානායක්කාරගේ නවතම මෙහෙයුම
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 20, 2020 9:57 am by nuwanmja

» Happy Birthday
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 20, 2020 9:21 am by nuwanmja

» Thought for the day...
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 20, 2020 12:01 am by sashimaal

» Gota's Era
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Feb 19, 2020 1:04 pm by කිත්සිරි ද සිල්වා

» හොදට තිබුණ රටක්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Feb 19, 2020 9:46 am by කිත්සිරි ද සිල්වා

» In the Meantime, Within Our Shores !
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyMon Feb 17, 2020 12:40 pm by කිත්සිරි ද සිල්වා

» How does the stock market work?
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyMon Feb 17, 2020 11:07 am by කිත්සිරි ද සිල්වා

» An ex-businessman, now bankrupt,
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptySun Feb 16, 2020 9:24 pm by Backstage

» Oil, Gold & Silver Prices
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 13, 2020 1:50 pm by කිත්සිරි ද සිල්වා

» ආර්ථික වර්ධන වේගය – දකුණු ආසියාවේ රටවල් 8කින් ශ්‍රී ලංකාව 6 වැනි තැනට
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Feb 12, 2020 11:47 pm by nihal123

» LOLC Holdings
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Feb 12, 2020 6:19 pm by NIRMALSG

» චීනය කොරෝනා මරණ සංඛ්‍යාව ගැන සැබෑ තතු සඟවන බවට තොරතුරු හෙළිවේ
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 06, 2020 8:33 pm by nihal123

» VPEL.N0000 (Vallibel Power Erathna PLC)
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 06, 2020 11:29 am by කිත්සිරි ද සිල්වා

» Obituary Notice.
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 06, 2020 10:47 am by කිත්සිරි ද සිල්වා

» IOC පිරවුම්හල් හිමියන් පාරට බසී. මිල සමාන කරන්නැයි ඉල්ලයි
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Feb 06, 2020 10:37 am by කිත්සිරි ද සිල්වා

» කොරෝනා වෛරසය හමුවේ ලෝක වෙළෙඳපොළේ තෙල් මිල සීඝ්‍රයෙන් පහළට
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Feb 05, 2020 11:15 am by nihal123

» 2013 දී ශ්‍රී ලංකන් ගුවන් සේවයේ ඉහළ නිලධාරී බිරිඳකට ඩොලර් මිලියන 2ක අල්ලසක්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyTue Feb 04, 2020 12:53 pm by කිත්සිරි ද සිල්වා

» නව කොරෝනා වෛරසයේ ආර්ථික බලපෑම්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyMon Feb 03, 2020 11:16 pm by nihal123

» චීනයේ හුනාන් පළාතේ තවත් වයිරසයක් පැතිරයන බවට අනතුරු ඇඟවීමක්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyMon Feb 03, 2020 9:15 pm by serene

» ද ෆිනෑන්ස්, අර්ථසාධක අරමුදලේ රු. මිලියන 205 ක් ගිලියි
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyMon Feb 03, 2020 12:29 pm by nihal123

» COMB.N0000 (Commercial Bank of Ceylon PLC)
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptySat Feb 01, 2020 6:16 am by serene

» BPPL Holdings Limited
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyFri Jan 31, 2020 8:41 pm by pathfinder

» මූල්‍ය සමාගම්වලින් භාගයක්ම දුවන්නේ අමාරුවෙන්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyFri Jan 31, 2020 8:08 pm by nihal123

» EPF ආයෝජනයට සූදානම්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Jan 30, 2020 10:13 pm by nihal123

» Man’ who gave birth in Matara hospital says he doesn’t want his baby
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Jan 30, 2020 6:57 pm by Backstage

» ප්‍රතිපත්ති පොලී අනුපාතය අඩු කෙරේ
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Jan 30, 2020 10:54 am by nihal123

» Sri Lanka’s EPF bought shares with no approval, no analysis
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Jan 30, 2020 9:35 am by nihal123

» කොරෝනා නිසා ගෝලීය සමාගම් රැසකට බිලියන ගණනක් පාඩුයි
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Jan 29, 2020 10:33 pm by nihal123

» කොටස් වෙළෙඳපොළ සක්‍රීය වෙයි. දෛනික පිරිවැටුම රු. බිලියනය ඉක්මවයි. සියලු කොටස් ඒකක 51කින් ඉහළට
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Jan 29, 2020 10:20 pm by nihal123

» කොරොනා වෛරසයෙන් කොටස් වෙළෙඳපොළට දැඩි බලපෑම්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyTue Jan 28, 2020 2:39 pm by lanka

» LIOC.N0000 (Lanka IOC PLC)
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyMon Jan 27, 2020 9:48 am by LSE

» බැඳුම්කර වංචාවේ වෝහාරික විගණන වාර්තාව පාර්ලිමේන්තුවට
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyFri Jan 24, 2020 7:05 am by nihal123

» අසාදුගත ව්‍යාපාරිකයින්ට රජයෙන් දුන් සහනය මෙන්න
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyFri Jan 24, 2020 6:37 am by nihal123

» සුරැකුම්පත් කොමිසමට නව සභාපතිවරයෙක්
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Jan 22, 2020 10:20 am by lanka

» කොටස් තැරැව්කරුවෝ අගමැති මහින්ද හමුවෙති
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyMon Jan 20, 2020 9:29 pm by nihal123

» SEYB.N0000 (Seylan Bank PLC)
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptySun Jan 12, 2020 10:06 pm by subash

» ශ්‍රී ලංකා කොටස් වෙළෙඳපොළ ඉතිහාසයේ දෙවැනි විශාලතම කොටස් ගනුදෙනුව අද
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Jan 09, 2020 9:59 pm by nihal123

» Hayleys MGT
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Jan 09, 2020 5:40 pm by subash

» Browns Investments update
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyThu Jan 09, 2020 10:42 am by The Invisible

» Tokyo Cement
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Jan 08, 2020 10:48 pm by The Invisible

» Lanka Tiles
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Jan 08, 2020 10:44 pm by The Invisible

» RCL - Royal Ceramics
Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit EmptyWed Jan 08, 2020 10:39 pm by The Invisible

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Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit

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Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit Empty Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit

Post by Backstage on Wed Dec 11, 2019 4:16 pm

Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit
By Anusha Ondaatjie

December 10, 2019, 2:30 AM GMT+5:30 Updated on December 10, 2019,
https://www.bloomberg.com/news/articles/2019-12-09/sri-lanka-s-lolc-prepares-to-sell-its-biggest-overseas-unit


LOLC plans to sell Cambodia unit to raise funds to expand
LOLC may seek strategic investor for Singapore holding firm



LOLC Holdings Plc, Sri Lanka’s second-largest publicly traded company by revenue, plans to sell its stake in a unit in Cambodia and use the proceeds to fund acquisition of microfinance firms in emerging markets from Brazil to India.

LOLC Holdings plans to sell its 70% stake in Prasac Microfinance Institution Ltd., which also counts Hong Kong’s Bank of East Asia Ltd. as a shareholder, LOLC’s Deputy Chairman Ishara Nanayakkara said. He declined to disclose pricing details.
relates to Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit

I

“It is very large as a micro finance institution. I think Prasac needs to move to a bank,” Nanayakkara, 46, said in an interview at LOLC’s headquarters in Colombo. The company’s 30% return on equity in Cambodia, which has a largely dollarized economy, makes it attractive, he said.

For Nanayakkara, who runs two MFIs in Cambodia, selling Prasac, the nation’s biggest micro lender, will help reduce risk as the market saturates. More than 70 registered MFIs jostle for business in a country with 16 million people. Cambodia, with a median outstanding loan of $3,370 a borrower, has the world’s highest level of small-ticket debt, according to a report released earlier this year.
Living on Debt

Cambodia has the highest average of small loans

Source: Micro-Credit Ratings International Ltd., World Bank

“There isn’t much scope” for micro lenders to expand in Cambodia, said Sanjay Sinha, Gurgaon, India-based managing director of Micro-Credit Ratings International Ltd. “Loan sizes have been increasing. As a result the portfolio has been going up, which itself can lead to dangers of indebtedness.”

LOLC’s shares, which have gained 27% this year, fell 3.2% in Colombo, the most since Oct. 15.

Prasac, which reported a 27% jump in its loan portfolio in 2018, had about 400,000 customers that year. About 80% were women. The company had total assets of $2.4 billion.

Prasac’s success -- LOLC first acquired a stake in the company in 2007 -- has emboldened Nanayakkara to expand in the sector across emerging economies. LOLC paid $186 million to boost its stake to 70% from 22.5% in 2017.

Read: Microfinance Runs Amok in Cambodia Where ‘Everybody Has a Loan’

Next year, LOLC, which gets about 84% of its pretax income from overseas, plans to expand into Uganda, Kenya, Tanzania, Zimbabwe and Mozambique, Nanayakkara said. The company is also close to acquiring a firm in India’s Tamil Nadu state, and is seeking opportunities in Brazil, he said.

“What we are trying to create is the world’s largest micro finance platform,” Nanayakkara said.

To fund future growth, Nanayakkara says he will consolidate his MFI business under a Singapore-based company. He plans to sell a stake in that unit to a strategic investor or private equity funds “probably” in 2021, he said.

Read: Top India Microlender Seeks $900 Million to Finance Loan Growth

Nanayakkara’s father started Ishara Traders importing used Japanese cars into Sri Lanka. Nanayakkara started focusing on providing micro loans at LOLC, which he joined as its deputy chairman in 2002, to women and small firms that were borrowing from money lenders at usurious rates. That focus prompted Orix Corp. sell its stake in LOLC to the tycoon in 2018, he said.

For now, Cambodia is LOLC’s biggest business. The World Bank forecasts the nation’s economy will expand 6.8% next year, making it Southeast Asia’s fastest growing economy. In contrast, Sri Lanka is predicted to grow at 3.3%.

Read: Addicted to Chinese Money, Cambodia’s Capital Is Transforming

Still rising personal debt is a risk. Cambodians had $8 billion of micro loans at the beginning of 2019, or about a third of the nation’s gross domestic product, according to a report by the Cambodian League for the Promotion and Defense of Human Rights and Sahkmakum Teang Tnaut. That’s left millions of people at the risk of losing their homes, according to the report.

Prasac had a bad loan ratio of 0.7% in 2018. That, according to Nanayakkara is because of the company’s focus on women.

All over the world at “the bottom of the pyramid, women with entrepreneurial spirit, want more money,” Nanayakkara said. “So with each loan cycle, we upscale her. Have to make sure she doesn’t over expand.”

— With assistance by Asantha Sirimanne
(Adds LOLC’s share performance in sixth paragraph.)
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Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit Empty Re: Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit

Post by hammurabi on Wed Dec 11, 2019 7:10 pm

Would possibly buy back the remaining public holding 5.5% at LOFC
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Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit Empty Re: Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit

Post by hariesha on Fri Dec 27, 2019 11:49 am

If the below pricing is correct, LOLC is going to make a massive gain. USD 600 million is more than 109 billion rupees. If the figures are correct, LOLC is going to make a massive Rs.50b+ gain (rough calculations only-need to analyze again) at company level. Probably the biggest capital gain recorded by an Sri Lankan business entity ever.

If some one is having precise calculations, please share.

Korea’s Kookmin Bank to buy stake in LOLC Sri Lanka’s PRASAC for US$600mn

ECONOMYNEXT- Korea’s Koomin Bank will buy a 70 percent stake in PRASAC Mincrofinace, a unit of Sri Lanka’s LOLC, for 603 million US dollars, a report said.

Bloomberg Newswires said KB group will pay 603 million dollars for 70 percent.

The balance 30 percent will also be purchased after two years.

LOLC owned 70 percent of the firm.

Cambodia is a mostly dollarized economy with a high degree of monetary stability and the central bank has little leeway to generate instability.

You may also read:

LOLC ha said that proceeds will be used to acquire micro finance companies in other countries. (Colombo/Dec27/2019)

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Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit Empty Re: Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit

Post by smallville on Wed Jan 01, 2020 1:00 pm

Share price sky rocketed to 194 before plunging to 177.

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Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit Empty Re: Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit

Post by nuwanmja on Wed Jan 01, 2020 4:43 pm

smallville wrote:Share price sky rocketed to 194 before plunging to 177.
LOLC is trying to control price upper movement. isn't it?

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