Ashok Pathirage to increase NDB Bank stake to 12 percent

Set to buy 3 percent stake owned by Swiss based SPV Catana

By Ravi Ladduwahetty

Veteran stock market investor Ashok Pathirage will shortly increase his stake in NDB Bank to 12 percent, top market sources told The Island Financial Review yesterday.

 The stake Pathirage and related parties will acquire  will be the  shares owned by Swiss based special  purpose  vehicle Catana Ltd, which amounts to 3 percent  of the NDB Bank shares  worth over Rs. 700 million which will increase  his stake and that of related parties from the present 9 percent  since the recent acquisition.   

   "NDB Bank will be the bank for the future and will be the best bank in Sri Lanka with excellent growth prospects and that was the reason why we decided to increase the stake to 12 percent," Pathirage told  The Island Financial Review by telephone from Singapore yesterday.

 Responding to a question  as to whether he has applied  for the approval of the Central Bank  for the acquisition  in view of the mandatory requirement  of the Central Bank  to have approvals  in the case of shareholders owning in excess of 10 percent  of licensed  commercial banks, he said that it would be done so with the acquisition of the remaining stakes.

This follows the recent acquisition that was made by him along with the companies that he has controlling interests in – Asian Alliance Insurance and  Asiri Hospitals into NDB Bank where 10.5 million shares , an 8 percent stake, were bought at Rs. 1.3 billion.   

  He already had a 2 percent stake  in NDB Bank and with the recent acquisition, his stake and that of related parties, went up to 9 percent.

NDB Bank is well poised for unprecedented growth with Chairman Hemaka Amarasuriya in a previous interview with this newspaper announcing that the bank would be targeting  100 countrywide branches  during the shortest possible time, along with  tie  up with banks in India and the Gulf or corresponding  arrangements. 

Earlier, the deal   where 7 percent of the NDB Bank shares were sold  for Rs. 2 billion was arranged by Frontier Capital Partners Ltd, a deal which CEO  Nishan Sumanadeera described as having taken a few weeks.

animated gif
Processing Request
Please Wait...