HNB finances Softlogic’s strategic investment in ODEL
View(s):Hatton National Bank PLC this week financed Softlogic Group’s strategic investment in fashion house ODEL, enabling the conglomerate to further strengthen its presence in the apparel and fashion accessories market.
Softlogic purchased the shareholdings of Otara Gunawardene, and brothers Ajith and Ruchi Gunawardene in ODEL in a groundbreaking transaction, which gives the group 45 per cent ownership in ODEL, according to a media release from HNB
Picture shows Softlogic Group Chairman Ashok Pathirage and HNB Managing Director / CEO Jonathan Alles in the traditional handshake after a deal, flanked by officials from both organisations.
“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,” the bank said.The statement said Softlogic Group Chairman Ashok Pathirage commended HNB Managing Director / CEO Jonathan Alles and the bank for being supportive of the deal. “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,” Mr. Pathirage said.
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 farsighted 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,” he added.