MMBL in new strategic alliance with Spence

TIE-UP: The private equity and investment banking boutique, Mercantile Merchant Bank (Ltd.) (MMBL), has formed a new strategic alliance with the Aitken Spence Group by selling them a 50 percent stake in its subsidiary, MMBL Money Transfer (Pvt) Ltd.

MMBL Money Transfer is a principal representative in Sri Lanka for the US-based, Western Union Money Transfer, and has a local network of over 400 sub-representatives.

The alliance is expected to help double its coverage over the next three years and draw on Aitken Spence's management expertise.

In 2006, MMBL Money Transfer will handle inward remittances in excess of US$70 million.

This deal will bring substantial benefits to Sri Lankans living at home and their relatives abroad as well as bringing much needed foreign currency into the country from across the globe.

Another successful venture in the MMBL portfolio is the group company which is the Global Service Partner (GSP) in Sri Lanka for the US Fortune 500 company, Federal Express (FedEx).

After building up a substantial market share in Sri Lanka for this well known brand, the MMBL portfolio company established a strategic alliance with the Hayley's Group last year, on the basis of a 50/50 joint venture. MMBL is a joint venture between the Pathfinder Group and Denmar Associates of the United States, both of which are controlled by high net-worth shareholders.

This has given MMBL access to a wide range of institutions and high net-worth individuals across the world. Drawing upon the resources of its shareholders, has brought it huge advantages both in evaluating strategic options and supporting management initiatives, as well as assisting in the structuring of finance arrangements.