Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Monday, 3 October 2016, 16:00 HKT/SGT
Share:
    

Source: Group Lease PCL
Group Lease PCL (SET:GL) Acquires 29.99% in Leading Sri Lanka Finance Firm
New partnership expected to contribute highly positive impact from this quarter

BANGKOK, Oct 3, 2016 - (ACN Newswire) - After a spate of aggressive expansion in ASEAN, SET-listed digital finance company Group Lease Public Company Limited ("GL", SET:GL) is now extending its business footprint to outside the region by acquiring a substantial stake in a leading Sri Lankan finance institution registered by the Sri Lanka Central Bank which is highly profitable and listed on the Colombo stock exchange.

According to GL Chairman and CEO Mitsuji Konoshita, GL's latest decision to buy 29.99% of Commercial Credit & Finance Plc (CCF) will further enhance the strategic partnership between the two groups. "We will combine GL's efficient digital finance platform with CCF's successful microfinance model to grow our businesses in all markets where we are and will be present. This acquisition will bring estimated consolidated profits of about US$7 million annually starting immediately in Q4 this year," Mr. Konoshita said.

Mr. Konoshita also noted that GL, through its subsidiary in Singapore GL Holdings (GLH), will potentially have the rights to acquire the remaining 70% in CCF should the CCF shareholders decide to sell in the future under a special clause on the first rights of refusal stipulated in the shareholders agreement.

The acquisition valued at US$70 million marks GL's first major expansion outside of the ASEAN region. From its home base in Thailand, GL has expanded successfully into Cambodia, Laos Indonesia and, more recently, Myanmar.

In the same exercise as the CCF acquisition, GLH is also acquiring full ownership of CCF's microfinance subsidiary in Myanmar - BG Microfinance Myanmar Co Ltd (BGMM). GLH in early September bought 71.9% shares in BGMM and is now buying up the remaining 28.1% from CCF to gain complete control.

At a shares sale/purchase agreement signing ceremony in Bangkok to effect both transactions on October 3, the GL Chairman Mr. Konoshita said the CCF acquisition in particular will have a significant impact on the group's profitability right away since earnings from CCF will be consolidated into GL's accounts starting in the current Q4.

CCF has an assets size of about US$500 million compared to GL's roughly US$450 million although the latter's market capitalization is substantially larger than that of CCF owing to the solid strength and popularity of the Thai stock market compared to the less developed Sri Lanka stock exchange. CCF has projected a net profit of US$22 million this year.

Mr. Konoshita noted that GL will have some representation on the CCF Board but will allow the current management a free hand in continuing to run the company because the management is very effective. "This is a mature company with perfect management. We may support by introducing supplementary businesses such as e-payment, e-commerce or insurance," he said.

The shares sale/purchase agreement signed on October 3 takes immediate effect conditional on the approval of the relevant authorities in both countries, endorsement by the Extraordinary Shareholders Meeting (EGM) and also the Independent Financial Advisors (IFA) report.

Mr. Konoshita stated that the GL-CCF relationship is a win-win strategic partnership giving synergies to both sides. "Our digital finance platform can nicely enhance their expertise and knowhow in microfinance; while their need to access to capital can easily be met by our capability to raise funds internationally," he added.

Mr. Konoshita stressed that the new partnership with CCF will produce highly positive impact on GL's revenue and earnings in the future because the "group finance" model which has been successfully developed in the microfinance heartlands of Sri Lanka and Bangladesh will help to vastly increase GL's traditional markets of consumer finance and hire-purchase in the region and elsewhere.


About Group Lease PCL

Group Lease Public Company Limited was established on 6th May 1986 and listed on the Stock Exchange of Thailand in 2004 (SET:GL). The company has expertise in hire-purchase of motorcycles, as it has been in the motorcycle leasing business for over 20 years, with motorcycle brands for financing including Honda, Yamaha, Suzuki, Kawasaki.

In 2007, the APF group became the major shareholder holding around 65% of total shares. In 2012, GL announced a long-term business plan to become the leading finance company in the Southeast Asian region. To do so, GL formed Group Lease Holdings Pte. Ltd. (GLH), a Singapore holding company, as headquarters for its expansion in other countries. For more information, please visit www.grouplease.co.th.

Contact:
MTMultimedia Co Ltd for Group Lease PCL
Orn-anong ("Fah") Pattaravejkul
Tel: +66-2-612-2081 #129 
Mobile: +66-86-884-4458
E-mail: ornanong.p@mtmultimedia.com
Website: www.mtmultimedia.com


Oct 3, 2016 16:00 HKT/SGT
Source: Group Lease PCL

Topic: Stock--buying or selling
Sectors: Daily Finance, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2016 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.



Group Lease PCL
Nov 28, 2016 19:00 HKT/SGT
GL's Great Leap Forward
Nov 14, 2016 12:50 HKT/SGT
GL Shows New Record-High Q3 Profits, Expects Even Stronger Growth in Q4
Oct 13, 2016 16:00 HKT/SGT
GL Partners AMK's U Aung Moe Kyaw, Others in Major Myanmar Expansion
Sept 7, 2016 13:00 HKT/SGT
Group Lease PCL (SET:GL) Expanding into Microfinance Market in Myanmar
Aug 29, 2016 19:00 HKT/SGT
True Money to Boost Group Lease PCL (SET:GL) Sales in Cambodia
Aug 15, 2016 18:00 HKT/SGT
Group Lease PCL (SET:GL) Q2 Profits Nearly Double Y/Y
July 12, 2016 14:30 HKT/SGT
New Major Expansion for Group Lease PCL (SET:GL) in Indonesia
May 23, 2016 17:00 HKT/SGT
Group Lease PCL and J Trust Join Forces, Expanding Digital Finance to Indonesia
May 18, 2016 18:30 HKT/SGT
Group Lease PCL to Raise More Than 10 Billion Baht to Fund Major Expansion
May 13, 2016 18:00 HKT/SGT
Group Lease PCL (SET:GL) Q1, Posts New Record-High Profits
More news >>
 News Alerts
Copyright © 2016 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 10 8405 3688 | Hong Kong: +852 2217 2912 | Singapore: +65 6304 8926 | Tokyo: +81 3 5791 1818

Connect With us: