Aug 25, Colombo: Sri Lanka's investment company, Asia Capital today sold 30% stake of Asia Asset Finance to India's leading pure-play gold financier Muthoot Finance for US$2.1 million.
In a disclosure to Colombo Stock Exchange, the Asia Capital, the major shareholder of Asia Asset Finance, announced that it sold 167,785,600 shares in the financial service firm at Rs. 1.60 per share to Kochi-based Muthoot Finance.
The south-India based Muthoot Finance, with headquarters in Kochi in Kerala, has approximately 4,400 branches and is known as the largest gold financing company in the world.
In addition, the Indian financial service company offers Foreign exchange services, money transfers, and financing of small businesses, vendors, farmers, traders, SME business owners and salaried individuals.
Asia Asset Finance, which has been in the lending business since the 1970s, is involved in retail finance and business loans, and operates from 11 branches in the island nation.
In a statement Muthoot said that through the investment it will help the Lankan firm operationalize loans against gold ornaments business in the island nation.