In March 2022, Sri Lanka’s Multi Finance PLC was acquired by LB Finance PLC in a Rs. 400 million acquisition that gives LB Finance a 64.63% stake in the company that was previously held by Fairway Holdings (Pvt) Ltd. This acquisition will help strengthen the presence of LB Finance and diversify its product portfolio with plans to infuse fresh capital to the company. As per the regulations of the Central Bank, LB Finance will now undertake steps to merge the two companies once legal matters are finalized.
LB Finance bought 28,787,350 ordinary voting shares of Multi Finance at Rs. 9.70 per share. An additional 12,322,725 ordinary voting shares at Rs. 9.80 per share were bought over from Fairway Holdings. Along with the capital infusion to meet the minimum core capital requirement of the Central Bank of Sri Lanka, the move is welcomed by both companies for the new knowledge and expertise that is expected to be shared between LB Finance and Multi Finance. Pushpike Jayasundera, CEO of Multi Finance welcomed the acquisition saying, “Multi Finance looks forward to working with LB Finance and moving together into an exciting future.”
LB Finance is a licensed Sri Lankan Finance Company. Incorporated in 1971 as a Private Limited Liability Company, it was listed on the Colombo Stock Exchange in 1977 and re-registered in June 2008 under the new Companies Act No. 07 of 2007. It serves as a reliable partner for businesses and individuals seeking financial assistance.
Multi Finance PLC was founded in 1974 and over the next 48 years, it emerged as one of the leading lending finance companies in Sri Lanka. MFP offers a wide range of products that cater to all types of customers, including Savings, Fixed Deposits, Leasing, Business Loans, Micro Finance, Pawning, Multi Draft, and Trader Finance. In this time, Multi Finance PLC has proven to be a reliable financial solutions provider in Sri Lanka.