By Duruthu Edirimuni Chandrasekera
A stake in Nanda Investments and Finance Limited owned by the Mallawarachchi family is being negotiated to be divested, according to sources close to the company.
“There is a party that has approached Nanda Investments and Finance and the discussions are on,” a source told the Business Times. He didn’t divulge for how much it is being sold, but said that it is a part stake of the 42 per cent which the Mallawarachchi family owns.
Lalith Mallawarachchi, also the managing director of the company, has 16.89 per cent in the company while his automobile company Nanda Motors has 14.6 per cent. Dinal Wijemanne, former CEO/Managing Director of brokerage Taprobane, has 28 per cent. Deposit mobilisation, leasing, hire purchase and loans to individuals and small to medium scale enterprises are the core businesses of Nanda Investments and Finance.
The history of the company goes back 50 years when its founding Chairman/ Managing Director the late Sirisena Mallawarachchi established a finance company which was originally named Nanda Investments Ltd. It was listed on the Diri Savi Board of the Colombo Stock Exchange in July 2011. Mr. Sirisena Mallawarachchi, who was informally known as “Nanda Mudalali”, was the owner of Nanda Motors (Pvt) Ltd, the agent for a spectrum of renowned passenger vehicle brands such as Opel, Ford, Holden and Austin Cambridge.
The pre tax profit of the Rs 88 million deposit-base company was at Rs 21.9 million for the year ended 31st March 2012 compared with Rs 22.2 million in the year before. “Last year the comparative figure on Change in Fair Value of Investment Property has been restated to conform to a variation in valuation of the investment property. Hence the revised profit of last year after the amendment was Rs 48.9 million. Change in Fair Value of Investment Property has contributed Rs 6.3 million during the year whereas the revised Change in Fair Value of Investment of last year has been Rs 28.6 million,” Dr. S. P. Jayawardhana, Chairman of the company has said in his annual statement.