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.
Fairway Holdings, a rapidly diversifying conglomerate, recently acquired Multi Finance PLC under its umbrella with a view to giving this erstwhile financial institution that is known for its trust for 42 years and excellent array of financial services a veritable boost to serve its clients even better.
Multi Finance has shown much resilience and stability since its inception and has weathered many a storm in an era of worldwide financial turbulence and has emerged with an identity of strength to withstand financial adversity and is increasingly earning a position of sterling repute in the financial sector of our country.
Fairway Holdings would be using its vast experience in the corporate sector of Sri Lanka that ranges from construction, to leisure, aviation, trading, pharmaceuticals, biotechnology, waste management and financial services with particular emphasis on microfinancing via Lakderana to revive the industry and financially empower the masses to contribute to national development.
Also, Fairway Holdings will strive to enhance shareholder value through financial stability and growth, satisfy its valued customers by providing innovative solutions for their financial needs, train and empower employees to give their best, achieve the highest operational efficiency through advanced technology, adhere to the highest corporate ethics and social responsibilities and be recognized for expertise and professionalism.
Among the plethora of customer friendly services offered would be fixed deposits at very attractive rates of interest, savings, leasing, business loans, multi drafts, pawning/gold loans, and trader and microfinance.
This newly acquired finance company has been registered under the Monetary Board of the Central Bank of Sri Lanka in terms of the Finance Business Act No.42 of 2011 and is also a registered leasing establishment under Section 5 of the Finance Leasing Act No.56 of 2000.
It is also an approved credit agency under the Mortgage Act No.06 of 1949 and the Trust Receipts Ordinance No.12 of 1947.
It was incorporated as a limited liability company on October 14, 1974 under the Companies Ordinance No.51 of 1938 and the Company was re-registered under the Companies Act No.07 of 2007 on February 26, 2009. The Ordinary Shares of the Company were listed on the ‘DiriSavi’ Board of the Colombo Stock Exchange on July 13, 2011.
Furthermore, it would come under strict audits and checks of Fairway Holdings in addition to the direct supervision of Central Bank of Sri Lanka and would be backed by its untarnished reputation to being a financial institution of first choice for all financial needs of the general public.