Multi Finance close to finalising new owners
The under-fire Entrust Group’s subsidiary, Multi Finance PLC is close to finalising potential investors to bring in new owners to the company, officials said. ”We’re doing due diligences for some parties who have showed serious intent to buy this company,” an official told the Business Times. He said that during the past six months many proposals have come and they were evaluated. ”Among them were intentions to buy this company, part own and manage, etc. We went through all proposals,” the official said.
He said that a due diligence is nearing completion for real estate and properly developer, Prime Lands which is the forefront to buy Multi Finance.
Prime Lands Group comprises four subsidiaries – Prime Lands (Pvt) Ltd, Prime Homes International (Pvt) Ltd, Prime Grameen Micro Finance Ltd and Living Homes (Pvt) Ltd. He said that Multi Finance PLC, a new company with a moderate deposit base has attracted some firms that are growing inorganically.
Entrust which was a part of the Ceylinco Group (at the time Ceylinco Sriram) which collapsed in 2008, is being investigated over irregularities, by the CID and the Police with Central Bank (CB) carrying out their own probes. Entrust’s subsidiary Entrust Securities was taken over by the CB in January this year and its management given to the National Saving Bank after its liabilities fell below its assets putting depositors and investors at risk. In the wake of all this, the CB had taken steps to restructure Entrust subsidiary, Multi Finance.