LOLC acquires 60% in Cambodian microfinance Company | Daily News Online

September 15, 2014 2:52 PM

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The LOLC Group acquired a 60% stake in ThaneakeaPhum Cambodia (TPC), for USD 20.3 Million.

The acquisition was throughLOLC's fully owned subsidiary, LOLC Micro Investments Ltd (LOMI), which is the microfinance investment arm of LOLC. The LOLC Group has received all required regulatory approvals, including approvals from the Central bank of Sri Lanka, Ministry of Finance of Sri Lanka, National Bank of Cambodia and the Ministry of Commerce of Cambodia for the acquisition.

TPC is the first largest microfinance company in Cambodia with a gross loan book of USD 100 Million. TPC carries out its business operations through 52 branches distributed throughout Cambodia, with a total staff of 1,100 personnel and currently has a customer base of 170,000 microfinance borrowers. Further, it has a strong capital base and maintains a capital adequacy ratio of 16.8%, enabling the company to withstand potential shocks as well as providing a stable platform for strong growth.

This is LOLC’s second overseas acquisition, having successfully established its maiden overseas venture in Cambodia in 2006 through its investment in PRASAC Micro Finance Institution Ltd (PRASAC), the largest microfinance Company in Cambodia. LOLC Currently holds 22.25% of PRASAC.

The company carries out its business operations through its network of 182 branches and total staff strength of 3,400 personnel. It has an active client base of 231,000 clients and a gross loan portfolio of USD 485 Mn and total assets of USD 585 Million. The company is currently in line with projected earnings of USD 30Mn for 2014.

In addition to the above acquisitions, LOLC commenced operations of its microfinance company in Myanmar, LOLC Myanmar Micro-Finance Company Ltd (LMML) in 2013 as a green field operation.

Commenting on this significant milestone, Ishara Nanayakkara, Deputy Chairman of the LOLC Group said, “The LOLC Group's business expansion strategy is aimed at strengthening its core financial services business further. Within Sri Lanka, we have firmly and consistently held our position as the largest diversified Non-Bank Financial Institution to date whilst our top performing companies have each held strong footholds in diverse sectors of the country's economy.”

ஆதாரம்: dailynews.lk

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