People’s Leasing & Finance PLC (PLC), a wholly owned subsidiary of People’s Bank, is to acquire a 33% stake in First Capital Holdings PLC (FCH).
With the proposed acquisition which is subject to the approval of Central Bank and all other regulatory authorities, PLC will be expanding their product and service offerings, resulting in enhanced revenue and profits streams that will benefit from FCHs’ expertise in areas such as Investment Banking, Wealth Management, and Securities Trading which are likely to be new areas of growth for PLC.
“As one of Sri Lanka’s largest non-banking financial institutions, People’s Leasing & Finance PLC has the distinction of being a leader in leasing and related financial services. The acquisition will strengthen the Company’s offering in diversified financial services, enhancing the potential to reaffirm a firm foothold in the financial sector through a unique Public Private Partnership,” said CEO/GM PLC, Shamindra Marcelline.
“This move will strengthen combined synergies and enable PLC to access expertise in Investment Banking, Capital Markets and Wealth Management.
Managing Director/ Chief Executive Officer of FCH, Dilshan Wirasekara said, “People’s Leasing & Finance PLC and First Capital Holdings PLC have set the path for...
strategic partnership and believe that the synergies of both organizations will bring core competencies together for accelerated growth of the financial services sector.”
“Through the Corporate Finance arm of FCH, funds can be better managed to maximise returns to our clients while minimizing risk exposure through the expertise stemming from FCH’s Asset Management business. This will enable PLC to optimize funding and asset-liability management, thereby expand the footprint in the monetary market and consolidate financial stability.”
PLC’s collaboration with Lanka Alliance Finance Ltd in Bangladesh is likely to open doors to FCH to initiate a footprint in that country in the area of investment banking and capital markets, opening doors to new frontiers of expansion outside Sri Lanka.
FCH will also benefit from being associated with a State Owned Enterprise (SOE) with a vibrant market presence, which gives them access to unique resources and strengths.