LOLC Alarm Bells!

Wonder whether this entire LOLC deal is to manipulate the market by some insiders connected with the majority shareholders., LOLC officially said that money is not coming to sri lanka? Where is it going! Will LOLC shareholders ever benefit from this deal? LOLC has never paid a dividend to its shares holders in the past!!

Ishara Nanyakkara will be the richest guy on books but he has not brought his wealth to Sri Lanka. Shareholders only change hand shares and insiders traders and from runners will immensely benefit from this at the expense of small shareholders which we need to protect in this forum.

SEC should investigate all transactions of LOLC.

Agree with quibit, price to be adjusted below 135/-

ECONOMYNEXT- Sri Lanka’s LOLC Holdings said it has signed two agreements to sell its Cambodian sub-subsidiary PRASAC to Korea’s Kookmin Bank for 603 million US dollars.

Kookmin Bank, the largest commercial bank in South Korea, has signed a share purchase agreement and shareholders agreement with LOLC Holdings, subject to final approval from the National Bank of Cambodia and the Financial Services Commission of Republic of South Korea, the Sri Lankan firm said in a stock market disclosure.

PRASAC is the largest microfinance institution in Cambodia, in which LOLC’s Singaporean subsidiary LOLC International Private Limited holds a 70 percent stake.

LOLC will sell the 70 percent ownership in PRASAC in two tranches; an immediate 422 million rupees and the balance in 2022.

The group also owns LOLC Cambodia Plc, the fourth largest microfinance firm in the South East Asian nation.

PRASAC was LOLC’s first foreign investment in 2007. The group also operates microfinance firms in Myanmmar, Philippines, Indonesia, Pakistan, Zambia and Nigeria.

LOLC’s share price had risen 179 rupees by December 30, from 113 rupees a share before the deal was announced in early-December. The share price has fallen to 169 rupees over the past week. (Colombo/Jan06/2020)

Officially announced

Winner123 wrote:ECONOMYNEXT- Sri Lanka’s LOLC Holdings said it has signed two agreements to sell its Cambodian sub-subsidiary PRASAC to Korea’s Kookmin Bank for 603 million US dollars.

Kookmin Bank, the largest commercial bank in South Korea, has signed a share purchase agreement and shareholders agreement with LOLC Holdings, subject to final approval from the National Bank of Cambodia and the Financial Services Commission of Republic of South Korea, the Sri Lankan firm said in a stock market disclosure.

PRASAC is the largest microfinance institution in Cambodia, in which LOLC’s Singaporean subsidiary LOLC International Private Limited holds a 70 percent stake.

LOLC will sell the 70 percent ownership in PRASAC in two tranches; an immediate 422 million rupees and the balance in 2022.

The group also owns LOLC Cambodia Plc, the fourth largest microfinance firm in the South East Asian nation.

PRASAC was LOLC’s first foreign investment in 2007. The group also operates microfinance firms in Myanmmar, Philippines, Indonesia, Pakistan, Zambia and Nigeria.

LOLC’s share price had risen 179 rupees by December 30, from 113 rupees a share before the deal was announced in early-December. The share price has fallen to 169 rupees over the past week. (Colombo/Jan06/2020)

@Winner123 may be you not read @quibit full post. LOLC mention money is investing, 


"plans to expand into Uganda, Kenya, Tanzania, Zimbabwe and Mozambique, Nanayakkara said. 
The company is also close to acquiring a firm in India’s Tamil Nadu state and is seeking opportunities in Brazil, he said."


http://www.dailymirror.lk/business-news/LOLC-to-sell-stake-in-Cambodia%E2%80%99s-Prasac-Microfinance/273-179425


i'm also totally agree with @quibit... 

Just think why Nanayakkara is leaving ??????? The reason is sri lankas finance market is dead. 15% new peole addeded to CRIB due to default loans. Non performing loan increased massively. No much future growth finance related activities in sri lanka. Some times unnecessary government interference as well as competition . Only positive gold and mortgage bacups against loans

Promoney wrote:

Lolc should be above 200 with in this week

I think it will start from 170 tomorrow.

how it will effect to the final target price of LOFC?

With this deal, LOLC will restructure its group. LOFC, CLC delisting may he on the cards soon. Last weeks buying in LOFC gave the signals.

Teller wrote:Just think why Nanayakkara is leaving ??????? The reason is sri lankas finance market is dead.  15% new peole addeded to CRIB due to default loans. Non performing loan increased massively. No much future  growth finance related activities in sri lanka. Some times unnecessary government interference as well as competition . Only positive gold and mortgage bacups against loans

If the Finance sector is dead, get all the f*** out of the market.
It is the lifeline of the economy.

Let the rally begin

Quibit wrote:Wonder whether this entire LOLC deal is to manipulate the market by some insiders connected with the majority shareholders., LOLC officially said that money is not coming to sri lanka? Where is it going! Will LOLC shareholders ever benefit from this deal? LOLC has never paid a dividend to its shares holders in the past!!

Ishara Nanyakkara will be the richest guy on books but he has not brought his wealth to Sri Lanka. Shareholders only change hand shares and insiders traders and from runners will immensely benefit from this at the expense of small shareholders which we need to protect in this forum.

SEC should investigate all transactions of LOLC.

Profit should be retained with LOLC in Sri Lanka and distributed to shareholders as dividends.
What are the regulations governing the foreign investment by Sri Lankan companies and repatriation of profits?

I never say any thing blindly

Quibit wrote:

Quibit wrote:Wonder whether this entire LOLC deal is to manipulate the market by some insiders connected with the majority shareholders., LOLC officially said that money is not coming to sri lanka? Where is it going! Will LOLC shareholders ever benefit from this deal? LOLC has never paid a dividend to its shares holders in the past!!

Ishara Nanyakkara will be the richest guy on books but he has not brought his wealth to Sri Lanka. Shareholders only change hand shares and insiders traders and from runners will immensely benefit from this at the expense of small shareholders which we need to protect in this forum.

SEC should investigate all transactions of LOLC.

Profit should be retained with LOLC in Sri Lanka and distributed to shareholders as dividends.
What are the regulations governing the foreign investment by Sri Lankan companies and repatriation of profits?

How can money come to Sri Lanka when PRASAC is held by LOLC singapore ? But ofcourse all the Profits are owned by LOLC - SL as its 100% owned. If LOLC Si lanka need cash, they have to ask LOLC singapore to declare dividends..

In anycase its only a "Where is cash" story. Result is same...

As indicated LOLC Singapore will utilise most of these Funds to buy other Micro Finance in India, Africa etc...As exchange regulations are relaxed uin Singapore LOLC can do this effectively, unlike here with all the red tape.. Good move anyway...Only Govts to blame..Not LOLC Fault. People shoudl have the right to move in and out the money they own without Govt regulations..

LOLC plans to build the World's biggest Micro-Finance Network using a Singapore listed LOLC, also LOFC, CLC, NIFL will be part of it.. Good move..

Micro finance business may suitable for other countries but not for sri lankan women.

Teller wrote:Micro finance business may suitable for other countries but not for sri lankan women.

oh come on Teller don't be such a sexist