Sri Lanka’s LOLC Group has signed a Share Sale & Purchase agreement to acquire the balance 50% holding in Diriya Investments Private Limited, which is the holding company of the Brown & Company Limited for a sum of Rs. 1.32 billion.
This deal, once done will result in LOLC Investments Limited, which is coming under the LOLC Group acquiring the entire stated capital of Diriya Investments (Pvt) Limited.
Under the terms and conditions of the transaction, LOLC investments limited have to make an initial payment of Rs. 660 million to the seller, with a further period of one year to settle the rest of the consideration.
Brown and Company PLC, the holding company of the Browns Group of Companies has been a subsidiary of LOLC while Diriya Investments Limited controls 49.8% of the Brown and Company PLC.
LOLC already has an existing direct holding of 4.7% in Brown and Company PLC.
LOLC says acquiring the Brown and Company PLC will help both groups to maximize the potential growth with the strong synergies available in the two groups of companies.
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