FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post


ADVERTISE
Poll

EXCHANGE RATE PREDICTION: 2022

 
 
 
 

View results

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» POSITIVES & TARGETS BY IMTIAZ BUHARDEEN
by Gowri123 Today at 4:38 pm

» When will supply chain disruptions ease?
by Gowri123 Today at 4:08 pm

» We’re seeing a shift toward international and value stocks, says Schwab’s Kleintop
by target1 Today at 2:40 am

» Wall Street stumbles as consumer pessimism stokes growth fears
by target1 Today at 2:34 am

» Free Market Capitalism vs. Crony Capitalism
by target1 Today at 2:30 am

» Sri Lankan corporations reap large profits as workers and rural toilers face poverty and starvation
by CHRONICLE™ Yesterday at 6:37 pm

» අද රාත්‍රියෙන් පසු, යක්ෂයාගේ හෝරාව ඇරඹේ!
by God Father Yesterday at 6:13 pm

» Derana 360 with Minister Dhammika Perera
by samaritan Yesterday at 1:07 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by LHW Yesterday at 9:24 am

» Breaking News- Kanchana to go to Qatar ; 2 more ministers off to Russia
by Beyondsenses Yesterday at 8:13 am

» PM thanks President Biden for assuring US support to Sri Lanka
by Beyondsenses Yesterday at 8:07 am

» Sri Lanka Stock Market heading toward ASPI 4500
by God Father Mon Jun 27, 2022 9:14 pm

» Why no power cuts in certain areas of Colombo?
by God Father Mon Jun 27, 2022 8:03 pm

» Expolanka to continue its winning streak
by samaritan Mon Jun 27, 2022 9:49 am

» කොළඹ රාජකීය ගොල්ෆ් සමාජය විසින් රජයේ දේපළ අවභාවිත කිරීම
by ddindika Mon Jun 27, 2022 9:33 am

» LOLC to enter the giant Indian Market
by samaritan Mon Jun 27, 2022 9:17 am

» LOLC HOLDINGS PLC (LOLC.N0000)
by CHRONICLE™ Mon Jun 27, 2022 6:46 am

» SOEs within Minimum Programme for Economic Recovery
by CHRONICLE™ Mon Jun 27, 2022 6:44 am

» COVID WAVES: Can there be another Covid-19 wave in Sri Lanka?
by CHRONICLE™ Mon Jun 27, 2022 6:36 am

» Luminex Limited lists on the Diri Savi Board after a capital raise of Rs. 250 Million
by CHRONICLE™ Mon Jun 27, 2022 6:34 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » HNB's Odel buyout; Balance Sheet may be in Question?

HNB's Odel buyout; Balance Sheet may be in Question?

+3
Top Trader
Market R
Business Basil
7 posters

Go down  Message [Page 1 of 1]

Business Basil


Manager - Equity Analytics
Manager - Equity Analytics

Recently SriLanka's Leverage King Ashok Pathirage haied country's former leading Private Commercial Bank which has now come down in the ladder - HNB for financing Softlogic's strategic investment in Odel.

Accordingly Softlogic Holdings Plc Chairman Ashok Pathirage has hailed Hatton National Bank (HNB) for financing its acquisition of a 45% stake in Odel Plc, which took place last week via the Colombo stock market with an investment of Rs. 2.7 billion.

In the statement issued by HNB Pathirage said that "Local banks such as HNB have traditionally been our partners, and, with this transaction, HNB has taken a bold step in the right direction. Such a transaction would certainly take a conglomerate like Softlogic to new heights and open exciting portals in those business frontiers where higher earning potential and value creation become not only possible but inevitable in a growing economy,"

Pathirage also commended HNB Managing Director/CEO Jonathan Alles and the bank for being supportive of the deal.HNB in its statement said it recently financed Softlogic Group's strategic investment in the leading fashion brand Odel, enabling the conglomerate to further strengthen its presence in the apparel and fashion accessories market.

However it is now revealed among cocktail circles that Pathirage's wife wanted to freely shop at Odel and which was the reason why Pathirage had to go for Odel Investment with HNB being taken in to scenes and since Otara was also after reaching 50 years whilst Odel was 25 years Otara wanted to be more close to her 'Dog Fantasies' which is now she exorbitantly market across her facebook fanpage.

As a proxy nominee of HNB; Softlogic purchased the shareholdings of Otara Gunawardene, and brothers Ajith and Ruchi Gunawardene, in Odel in a ground breaking transaction, which gives the Group 45% ownership in Odel, paving the way for it to assume control of the fashion retailer. The funding was provided as part of HNB's corporate strategy of supporting local corporates and entrepreneurs to realise their full business potential.

In his vision, Softlogic Group Chairman Ashok Pathirage has focused on the conglomerate becoming one of the leading retailers in the country while being the single largest franchisee of some of the most reputed international brands in the apparel and fashion accessories market in Sri Lanka. The acquisition of Odel gives Softlogic significant lead to retail its multinational brand portfolio through Odel, an immensely popular fashion chain. Following this transaction, Softlogic is required to make a mandatory offer to repurchase shares from other shareholders of Odel under SEC rules.

HNB CEO Jonathan Alles outlined the reasons which led HNB to finance a sizeable and high profile transaction of this nature. "It was an ideal opportunity to demonstrate the bank's commitment to the Softlogic Group, a valued relationship to the bank. This acquisition is a milestone achievement and we take considerable pride in ensuring that local entrepreneurs who are far-sighted and visionary are supported fully. Therefore, the value and benefit delivered to all parties through the successful execution of this transaction is, rewarding for the bank," Alles said.

Hatton National Bank PLC is a premier private sector commercial bank with a network of 250 customer centres spread across the length and breadth of Sri Lanka and caters to all segments of the market through its diverse product and service offering. The bank is also involved in insurance and capital market operations in the country through its group companies. During 2013, HNB's asset book surpassed Rs. 500 b, while the bank recorded a pre-tax profit of over Rs. 10 b for the year.

However with giving over Rs.2.7 billion to Softlogic and giving more loans for Softlogic earlier to acquire more hospitals many top shareholders and banking consultants and experts are now questioning the HNB Balance sheet.

Business Basil


Manager - Equity Analytics
Manager - Equity Analytics

ලංකාවේ දෙවනියට ලොකුම ණයකාරයා වෙන අශෝක් පතිරගේ?

ලංකාවේ ඉතා විශිෂ්ට ඝනයේ සංවර්ධන සහ ආයෝජන ප්‍රවර්ධන බැංකුවක් ලෙස හැඳින්වෙන එන්.ඩී.බී බැංකුවේ සභාපති මුල් පුටුවට සොෆ්ට්ලොජික් සමාගමේ සභාපති අශෝක් පතිරගේ මාන බලන බවට මුල්‍ය ව්‍යාපාර අංශයේ ආරංචි මාර්ග සඳහන් කරයි.

එහෙත් එන්.ඩී.බී බැංකුවේ ඇතුළු ඊට අනුබද්ධ ආයතන කිහිපයකම සේවක ප්‍රජාව ඒ පිලිබඳ සැක උපදවා ඇති බව තහවුරු වන්නේ අශෝක් පතිරගේ ප්‍රමුක සොෆ්ට්ලොජික් සමාගම් සමුහයම ලංකාවේ බැංකු වලින් ගත් මිලියන ගණන් ණය වලින් දුවන බැවින් අශෝක් පතිරගේ එන්.ඩී.බී බැංකුවේ සභාපති වුනොත් ඔහුට හිතු මතේ එන්.ඩී.බී බැංකුවේ මහජනතාවගේ මුදල් තැන්පතු වලින් සොෆ්ට්ලොජික් සමාගම් වලට ණය පාස් කරගනියි යන මුවාවෙනි.

ලංකාවේ ප්ලැටිනම් තරම් ම වටිනවා යයි පුරාජේරු බා සොෆ්ට්ලොජික් හෝල්ඩින්ග්ස් සමාගම 2011 ජූනි 9 වෙනිදා එම සමාගමේ කොටස් මිලියන 779 කොළඹ කොටස් වෙළඳපොලේ දිරි සවි පුවරුවේ ලැයිස්තුගත කරන අපේක්ෂාවෙන් සොෆ්ට්ලොජික් හෝල්ඩින්ග්ස් සමාගමේ කොටස් 139 ක් මහජනතාවට රුපියල් 29 කට වැනි ඉහල මිලකට නිකුත් කරේ වෙන කිසිවකට නොව සොෆ්ට්ලොජික් සමාගමට එයින් ලැබෙන රුපියල් බිලියන 4.031 (මිලියන 4031 ක් ) මුදලින් ඔවුන් බැංකු ණය මත මිලට ගත් රෝහල් සහ හෝටල් වල ණය බරින් මිදීමට ය. එය සොෆ්ට්ලොජික් හෝල්ඩින්ග්ස් හි සංස්ථා ප්‍රකාශය හෙවත් ප්‍රොස්පෙක්ටස් එකෙහිම සඳහන් විය.සොෆ්ට්ලොජික් සමාගම ණයට ගත් මුදල් ප්‍රොස්පෙක්ටස් හි සඳහන් වුයේ මෙලෙසයි

1.ආසිරි හොස්පිටල්ස් හෝල්ඩින්ග්ස් හි කොටස් 70,908,710 මිලට ගැනීමට සෙලාන් බැංකුවෙන් 12% පොලි අනුපාතය යටතේ රුපියල් මිලියන 250 (ලක්ෂ 2500)

2.ආසිරි හොස්පිටල්ස් හෝල්ඩින්ග්ස් හි කොටස් 153,362,050 මිලට ගැනීමට එච්.එන්.බී (හැටන් නැෂිනල්) බැංකුවෙන් පවතින පොලි අනුපාතයට 1.5% වැඩියෙන් රුපියල් මිලියන 1400 (බිලියන 1.4 හෙවත් ලක්ෂ 14000 ක්)

3.ආසිරි හොස්පිටල්ස් හෝල්ඩින්ග්ස් හි කොටස් 72,222,200 මිලට ගැනීමට සම්පත් බැංකුවෙන් පවතින පොලි අනුපාතයට 1.5% වැඩියෙන් රුපියල් මිලියන 650 (ලක්ෂ 6500)

4.ආසිරි හොස්පිටල්ස් හෝල්ඩින්ග්ස් හි කොටස් 14,492,750 මිලට ගැනීමට සෙලාන් බැංකුවෙන් පවතින 12% පොලි අනුපාතයට සොෆ්ට්ලොජික් ඉන්ටර්නාශිනල් සමගම ණයට ගත් රුපියල් මිලියන 117 (ලක්ෂ 1170)

5. සොෆ්ට්ලොජික් සමාගම දිවීමට, සේවක පඩි නදී ගෙවීමට හෙවත් කාරක ප්‍රාග්ධනයට ස්ටෑන්ඩර්ඩ් චාටර්ඩ් බැංකුවෙන් ගත් ණය පියවීම සඳහා එච්.එන්.බී (හැටන් නැෂිනල්) බැංකුවෙන් පවතින පොලි අනුපාතයට 1.5% වැඩියෙන් රුපියල් මිලියන 375 (ලක්ෂ 3750)

6.සෙලින්කෝ ටුවරිස්ට් හෝටෙල්ස් හෙවත් බෙන්තොට සී සෑන්ඩ් හෝටලය අයිති සමාගමේ කොටස් 1,216,325 මිලට ගැනීමට සම්පත් බැංකුවෙන් පවතින පොලි අනුපාතයට 1.5% වැඩියෙන් රුපියල් මිලියන 925 (ලක්ෂ 9250)


ඒ අනුව 2012 දී පමණක් ණය වල මුළු එකතුව රුපියල් මිලියන 4004 (බිලියන 4.004 ක් හෙවත් ලක්ෂ 40,040)

සාමානයෙන් මහජනතාව යම් ආයතනයක කොටස් මිලදී ගන්නේ එම ආයතනයේ වර්ධනයත් සමග ඉහල ප්‍රතිලාභ ලබා ගැනීමට වුවද මෙහිදී වුයේ අශෝක් පතිරගේ තම ණය උගුලෙන් බිඳීමට මහජනතාවට තම ආයතනයේ කොටස් විකුණා ඒ හම්බෙන මහජනතාවගේ සල්ලි වලින් ණය බේරීමය. මෙහි ලොජික් එක තේරෙන බාසාවෙන් කියනවනම් අශෝක් ණයට ගත්තේ මහජනතාව සල්ලි තැන්පත් කර ඇති බැංකු වලිනි මහජනතාවගේ සල්ලිය. ඒ මගින් ඔහු පොහොසත් විය. ඉන් පසු ණය තම පසු පස එන විට කොටස් වෙළඳපොලේ තම සමාගම ලැයිස්තු කර කොටස් නිකුත් කර මහජනතාවගේම සල්ලි වලින් ඒ ණය බෙරණ ලදී. එය සරල ලොජික් එකක් හෙවත් සොෆ්ට්ලොජික් එකකි. අවසාන තේරුම නම් අශෝක් ට ණය දුන්නෙත් අශෝක් ගේ ණය පියෙව්වෙත් මහජනතාව යන්නයි. ඒ වගේම අපි අද සී සෑන්ඩ් හෝටලයට ගියත්, සොෆ්ට් ල්ජික් එකෙන් ෆෝන් එකක් ගත්තත්, ලංකා වේ මදර් කයාර් හරි මැන්ගෝ එකෙන් හරි බදු ගත්තත් , ලංකාවෙන් ෆෝර්ඩ් හෝ දෛහට්සු වාහනයක් ගත්තත්, ඩෙල්, පැනසොනික්, සැම්සුන් එලෙක්ට්‍රොනික් බඩු ගත්තත් නයික්, ජියෝදානෝ ඇඳුම් හෝ ලිවයිස් ඩෙනිම් ගත්තත් පොහොසත් වන්නේ අශෝක් පතිරගේ බවයි. දැන් මේවට ඔඩෙල්, බර්ගර් කිංග්, ශ්‍රී ලංකා මොවෙන්පික් හෝටලයත් එකතු වී ඇත.

Market R

Market R
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

After they settle all the lons Softlogic will be a greate company. It will be different story if they stuck with these loans. Interesting to see what are the next moves of this company.

Market R

Market R
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

IPO is over valued they issued. What will happen who brought at the IPO?
How many years need to recover the loss?

Top Trader


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Well, i don't worry as to why HNB financed it or another bank finance it.

My basic question is will any bank willing to take risk with the small people? They will tell that and this as their policy, but when applying they will come out with enough excuses

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Banks always insist to placing a high value security avoiding the high risk of loan provision. I believe that board of directors of such institutions is jointly & severally liable in reaching such decisions.

Sstar

Sstar
Vice President - Equity Analytics
Vice President - Equity Analytics

How could bank find 100% financing of an acquisition. It is against the standard lending practice. Standard practice is to given 40% of share value.

Top Trader


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

What will happen if major shareholder, decided tom accept the Mandatory offer, how SHL going to fund another 3 Billion? Another Loan?

Top Trader


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Sstar wrote:How could bank find 100% financing of an acquisition. It is against the standard lending practice. Standard practice is to given 40% of share value.

I don't see any wrong on it, if you can get a 4 million facility for 1 Million, why at least they can't get the 100%

Sstar

Sstar
Vice President - Equity Analytics
Vice President - Equity Analytics

Top Trader wrote:
Sstar wrote:How could bank find 100% financing of an acquisition. It is against the standard lending practice. Standard practice is to given 40% of share value.

I don't see any wrong on it, if you can get a 4 million facility for 1 Million, why at least they can't get the 100%

I see your point. 1mn vs 2bn
But I have invested 1mn of my money, but Softlogic has not invested a cent in ODEL acquisition. Who is better? I think Ashok us better!!

Eng Krishantha

Eng Krishantha
Expert
Expert

Sstar wrote:
Top Trader wrote:
Sstar wrote:How could bank find 100% financing of an acquisition. It is against the standard lending practice. Standard practice is to given 40% of share value.

I don't see any wrong on it, if you can get a 4 million facility for 1 Million, why at least they can't get the 100%

I see your point. 1mn vs 2bn
But I have invested 1mn of my money, but Softlogic has not invested a cent in ODEL acquisition. Who is better? I think Ashok us better!!

Laughing Laughing Laughing

SM2014

SM2014
Manager - Equity Analytics
Manager - Equity Analytics

Market R wrote:IPO is over valued they issued. What will happen who brought at the IPO?
How many years need to recover the loss?

Do you know dear.. There are some employees in SHL who bought at IOp by obtaining personal loans that is not entirely employees decision. Ashoka P personally asked them to do so as he said it would reach above 40 in listing. There are lot of employees still paying loans from their salary. Theses are also some daytime robbing.

Top Trader


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Sstar wrote:How could bank find 100% financing of an acquisition. It is against the standard lending practice. Standard practice is to given 40% of share value.

If am not mistaken HNB help HJ also in same way years back on LMF

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum