Sri Lanka’s Dialog Finance to partner with a digital finance service provider to expand fin-tech business
Dialog Finance of Sri Lanka, which is the fin-tech unit of the country’s top mobile phone operator Dialog Axiata, has reportedly stated that it is planning on partnering with a digital finance service provider or a fin-tech expert to expand its fin-tech business.
The intention of the finance company, formerly known as Colombo Trust Finance, the company has stated in a note to shareholders on its rights issue.
Accordingly, Dialog Finance is to make a rights issue of 19 million shares at Rs. 40 each to raise Rs. 764 million to increase its core capital and comply with the minimum core capital rule set by the Central Bank of Sri Lanka.
Reports further state that the company is also looking at selling at least a 10 percent stake in the firm, now closely held by parent Dialog Axiata, to comply with the minimum public float rule for which it has got an extension till August 2019.
“The company is currently in the process of restructuring its business to establish the fintech model with the intention of partnering with a digital finance service provider or a fintech expert to enable an aggressive scale up, which will facilitate the sell down of Dialog’s stake and increase the public holding of the company,” the statement has said.
OSL take:
The announcement of Dialog Finance looking to expand its fin-tech business showcases the growth potential for fin-tech companies in Sri Lanka. Given Sri Lanka’s growing economy, the corporate sector is also in the process of consolidating its base and expanding, especially in the digital/technology fields.
This is a positive sign for foreign businesses/investors to explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/20190301/Z_1 |