DFCC Bank today sold 29,119,743 ordinary shares held in Lanka Ventures PLC (LVL), a subsidiary, to Acuity Partners (Pvt) Limited (Acuity), a joint venture investment banking company of DFCC Bank (DFCC) and Hatton National Bank PLC (HNB) for Rs18 per share.
LVL has made a separate announcement relating to this transaction wherein it has been disclosed that Acuity has also purchased the 20 pc stake in LVL that was held by HNB at the same price. DFCC's ownership in the subsidiary was 58 pc, and this is now reduced to an indirect holding of 39 pc consequent to these transactions.
The non-audited, provisional, accounting profit after tax of DFCC (before consolidation) on this transaction is approximately Rs 227 million. However, the consolidated income statement of DFCC will recognize only the profit attributable to the additional interest acquired by the other venturer, Hatton National Bank PLC which will be substantially lower.
This transaction is a further step in establishing Acuity Group as a full fledged investment bank. Acuity will be recapitalized by an additional equity infusion of up to Rs 1,000 million to be contributed equally by DFCC and HNB.
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Nihal Fonseka
Chief Executive Officer |
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