Eagle Insurance PLC’s second-largest shareholder NDB Bank, through its subsidiary Capital Development and Investment Company (CDIC), is acquiring the controlling stake in Eagle Insurance’s fully owned subsidiary, Eagle NDB Fund Management Company (ENDB), officials said this week.
This move by NDB was reported in The Sunday Times FT on September 7, 2008.
Subject to receiving relevant regulatory approvals Aviva International holdings (which previously controlled ENDB) through Aviva NDB Finance Lanka Private Ltd (ANFL) will remain as ENDB’s indirect shareholding partner with a stake of 49%, the officials said, after the transaction was announced in the Colombo Stock Exchange (CSE) on Wednesday. With this acquisition CDIC will own a direct and indirect shareholding representing 51% of the issued share capital of ENDB, on the basis that CDIC shall have the effective control of ENDB. CDIC, a subsidiary of NDB, is the NDB Group’s strategic investment arm. NDB has 99.66% of CDIC having bought Bank of Ceylon (BOC)’s 23.86% of the company in 2007.
At the time, CEO NDB, Eran Wickramaratne said that NDB has plans to invest in the financial services through the CDIC. “When BOC was looking to sell their CDIC shares, it made sense for NDB to acquire it as we had bigger plans for the company,” he said.
CDIC's main asset is the minority stake it has in ANFL with 41.56%. |
E-mail