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LOLC divests Lanka ORIX Securities
The Board of Directors of LOLC decided to divest its entire shareholding of 30% in Lanka ORIX Securities (Pvt) Limited (LOSEC) thereby completely moving out of this stock brokering entity, by disposing of its stake to Tushan Wickramasinghe, Director/CEO of the company, upon approval being granted by the Securities & Exchange Commission of Sri Lanka (SEC) on the 26th of June 2009 for the change of shareholding. Along with LOLC , Rajah Nanayakkara of Ishara Traders who held 40% of the equity also moved out by disposing his entire holding to Wickramasinghe.
Consequently, the legal entity "Lanka ORIX Securities (Pvt) Ltd’ will not exist anymore.
The Chairperson, Ms. Rohini Nanayakkara, stated: "there were articles in the media indicating the future Directors/Shareholders of the company and neither the Board of LOSEC nor LOLC had any knowledge or any part in this regard, as the divestiture was solely to Wickramasinghe. The new directors/Shareholders are not directors or shareholders of Lanka ORIX Securities."
Wickramasinghe who was on a leave of absence from the Board of LOLC for a year, will no longer serve as a member of the LOLC Board with effect from the upcoming AGM on 30th June 2009.
Ms Rohini Nanayakkara, Chairperson, Ishara Nanayakkara, Deputy Chairman , Ms. Kalsha Amerasinghe, Executive Director and Kithsiri Gunawardena, Chief Operating Officer & Chief Legal Officer, who served on the LOSEC Board representing LOLC and Ishara Traders and who remained on the board until the approval of SEC have resigned with immediate effect.
LOLC stated that this is the first statement it is issuing to the media regarding this divestiture as they awaited the approval of the SEC as per the regulations.
The Chairperson, Ms. Rohini Nanayakkara said "this divestiture is not an indication of LOLC moving out of Stock Brokering and we hope to re-commence this business at a future date. The key contributory factors of LOLC success have been its dynamism, professionalism and high standards of corporate governance maintained across the entire group."
The Group has made strategic investments in CLC, and PRASAC the largest microfinance institution in Cambodia and also formed the subsidiary LOLC Micro Credit Limited in partnership with the Netherlands Development Bank (FMO) as part of its local and regional growth strategy.
