Shareholders of Group Lease Public Company Limited (GL), Asean’s leading digital usnance usrm, gave
approval to the proposal to acquire shares in two usnance usrms in Sri Lanka and Myanmar as part of
its ambitious plan to become one of the “world-class” players.
With such approval, GL will acquire 22.27% shares in Commercial Credit and Finance PLC (CCF), a leading
usnance usrm listed on Sri Lanka stock market, as part of the company’s plan to acquire a total of 29.99%
equity stake in CCF. The acquisition of the remaining 7.72% shares from its two existing shareholders–which
does not involve connected transactions – is not subject to shareholders’ approval.
Such acquisitions will boost earning’s growth for GL from the proust sharing of around USD 7 million from
CCF to be booked in Q4 and more to come next year and beyond.
The GL’s shareholders also approved a proposed acquisition of all shares in BG Microusnance Myanmar
Co., Ltd., a microusnance usrm in Myanmar, to tap the high loan demand in the newly opened economy, as
well as a proposed issuance of debentures to usnance the expansion.
Mr. Mitsuji Konoshita, Chairman of the Board of Directors and Chief Executive Orscer of GL, revealed
the shareholders’ resolution, at the company’s extraordinary general meeting No. 2/2016 on December
6, 2016, to approve the proposed moves to expand the company’s presence in the digital usnance markets
in the Asean and Asian regions, which will be the new engine of growth for the company.
The acquisition will be made through Group Lease Holdings PTE. Ltd (GLH), a subsidiary registered on
the Singapore Exchange (SGX), buying 22.27% shares in Commercial Credit and Finance PLC (CCF) from
Creation Investments Sri Lanka LLC (Creation SL). CCF is a leading usnance usrm listed on Sri Lanka’s stock
market with about one million customers and that will help GL to widen its geographical scope of operations
beyond Asean to cover Sri Lanka, a growing South Asian market.
The 22.27% share acquisition will be part of the plan to hold a total of 29.99% shares in CCF, he said,
adding that GLH has purchased the digserence of 7.72% from two shareholders, i.e. BG Investments (PVT)
Ltd. and Mr. Stephen L Lafrance Jr. The purchases, which were not connected transactions, did not
require shareholder approval.
The combined value of the investments in CCF will reach THB 2.514 billion (about LKR 10.58835 billion).
The CFF investments will improve GL’s performance beginning Q4 of 2016, as about USD 7 million (or
about THB 244.6 million) will be posted as a proust sharing from CCF, whose proust for this year is estimated
to be around US$22 million and around US$30 million for 2017.
The deal will also enable GL to have access to microusnance know-hows, which can be used to apply for
credit expansions in Cambodia, Laos, Indonesia and Thailand.
Mr. Mitsuji added that GL’s shareholders also resolved to approve a proposed THB 277.24 million acquisition,
to be executed by GL and/or through GLH, of all 1,387,680 issued and paid-up ordinary shares in BG
Microusnance Myanmar Co., Ltd. (BGMM), a microusnance usrm in Myanmar, at about US$5.77 (about THB
199.79) per share.
The BGMM acquisition will allow GL to immediately expand microusnance business in Myanmar, a country
with a population of more than 50 million and huge loan demand. The deal means there is no need
for GL to go through the dirscult process of applying for a new microcredit business license from the
Central Bank of Myanmar. Having been in operation for more than two years, BGMM has nearly 10,000
customers and a loan portfolio worth more than US$1.2 million (about THB 41.9 million).
GL’s shareholders, at an extraordinary general meeting, also approved proposed issuance of convertible
debentures valued up to US$70 million to international investors on a private placement basis. Up to
US$50 million convertible debentures will be allotted to JTrust Asia (JTA), a strategic partner in Indonesia,
to usnance expansions and secure working capital for GL’s digital usnance business, and US$20 million
convertible debentures to Creation SL, a partner in Sri Lanka, to raise funds for continued expansion. The
debentures will have a three-year maturity period and a conversion price of THB 70 per share.
“The shareholders’ approvals will enable GL to increase its presence across the Asean and Asian regions
at rapid rate and reach its performance goals and become a world-class digital usnance usrm,” said the