Sri Lanka’s LOLC buys Unguka Bank in Rwanda
The Morning: Sri Lanka’s LOLC Holdings PLC discloses that its sub-subsidiary LOLC Mauritius Holdings Limited, has acquired 90% of the ordinary voting shares of Unguka Bank PLC in Rwanda on 14 September.
LOLC Holdings PLC bought 46,612,489 shares of Unguka Bank PLC at 114.43 Rwandan franc per share. Accordingly, the total amount invested for the acquisition of these businesses is 5,333,934,000 Rwandan francs. This is approximately Rs.1.44 billion.
Unguka Bank PLC is a microfinance bank licensed by the National Bank of Rwanda. The Bank was founded in 2005 and is licensed to take deposits from clients and grant loans, as well as engage in other related financial services.
OSL take:
The latest acquisition by LOLC is indicative of the strength and growth of Sri Lanka’s private sector. LOLC has many other business ventures in the African continent as well. Many Sri Lankan corporates have expanded operations into overseas markets. Even amidst the challenging economic conditions, a majority of Sri Lanka’s private sector managed to record profits, indicating the overall resilience of Sri Lanka’s economy. Sri Lanka’s manufacturing and export sectors also posted growth levels amidst challenges during the past few months. All these are a clear indication of the growing business potential in Sri Lanka. The country’s target of becoming an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed by the country all make Sri Lanka an attractive business destination in South Asia. Foreign businesses/investors could therefore explore the expanding opportunities in Sri Lanka and also look at forming partnerships or joint ventures with local businesses to further expand operations.
| Article Code : | VBS/AT/20231004/Z_5 |