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Profit-recorded Abans Finance cancels deal with Softlogic

12 Aug 2021

The proposed merger between Abans Finance and Softlogic Finance is off the table after Abans Finance managed to achieve a profit, before the tax deductions, in the financial year 2020/2021, which has reportedly given hopes about a financially strong 2021/2022.  The Secretaries for Abans Finance PLC yesterday (11) disclosed that the proposed acquisition which was announced on 29 September 2020 where Abans PLC agreed to sell 33,063,877 ordinary shares of the company to Softlogic Capital PLC, is no longer pursued by Softlogic and Abans.   It was further informed that the decision has been made due to the fact that Abans Finance PLC has been able to achieve a profit before tax (PBT) of Rs. 427, 166, 006 in the financial year 2020/21 with the hope of building a strong performance in the coming financial year.  Abans Finance PLC made this disclosure under Section 8 of the Listing Rules. Softlogic Capital PLC, as Abans Finance PLC shareholders, agreed to buy the aforesaid ordinary shares for at a price of Rs. 30.10 per share, subject to the receipt of all regulatory approvals that were required for the transaction, last year. Softlogic Capital was also to grant a mandatory offer to the minority shareholders of Abans Finance PLC following the aforesaid acquisition. Accordingly, Softlogic Capital was expected to have a shareholding in excess of 49.67% in Abans Finance PLC as well as a shareholding in excess of 72.94% in Softlogic Finance PLC, which has now announced the cancellation. 


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