NDB makes significant capital gains, poised for growth
In keeping with its strategic rearrangement of investments within the
Group pursuant to Aviva’s decision to exit Aviva NDB Insurance (ANI),
NDB Group has entered into a Share Sale and Purchase Agreement with
American International Assurance Company Limited (AIA) of Hong Kong, one
of the largest insurance companies in the world with an exclusive focus
on the Asia-Pacific region, whereby NDB Group has agreed to sell its
shareholding in the Aviva NDB Holdings Lanka (Private) Limited (Aviva
NDB Holdings) to AIA.
The finality of the intended sale process is expected to be reached
by end 2012, subject to having in place the necessary regulatory and
legal arrangements.
With the objective of continuing to provide all financial services
under one roof, NDB will also enter into an exclusive Bancassurance
agreement with AIA as the new controlling shareholder of ANI for a
period of 20 years and continue to provide its customers a wider and
stronger range of Insurance products.
Pursuant to this transaction NDB Group as part of its plans to
re–align resources from the sales proceeds for growth, will purchase the
balance shareholding of NDB Aviva Wealth Management PLC subject to
having in place the necessary regulatory and legal arrangements, thereby
consolidating its position as the market leader in Wealth Management in
Sri Lanka.
This will result in NDB Capital Holdings Plc owning 100 % of this
company. A fund management agreement will also be in place to manage the
ANI’s insurance funds exclusively for a period of 20 years.
Commenting on this transaction, CEO, NDB Group, Russell de Mel said,
“We are indeed pleased to have been part of the growth of Aviva NDB
Insurance Plc and the entry of the insurance giant AIA will further
strengthen this.
Insurance, the third pillar of the NDB Group, will continue to exist
through an even stronger alliance in Bancassurance with AIA. The net
receipts of US $ 59 million, arising out of these transactions, give an
opportunity for the NDB Group to further strengthen the strategic
alliances within the financial services sector, whilst enhancing and
releasing core capital; a prerequisite to boost organic and inorganic
growth of the NDB Group.
This is very timely to take on the opportunities to become a
significant national and regional player in the financial sector and
contribute further to the growth of Sri Lanka.”
NDB will continue to invest in the aggressive growth of its core
banking activities of Project and Infrastructure Financing, Corporate
Banking, Retail Banking, and SME Financing; while strengthening the
strategic investments in its Investment Banking Cluster for the growth
of its Investment Banking operations in Sri Lanka and Bangladesh, Wealth
Management and Stock Brokering Businesses under the recently formed NDB
Capital Holdings Plc.
Recently, the NDB Group marked a new era in the financial services
industry in Sri Lanka with the re-launch of Capital Development and
Investment Company PLC (CDIC), under a new corporate identity named NDB
Capital Holdings PLC. NDB Capital Holdings PLC continues to offer a
unique portfolio of services comprising of Investment Banking, Wealth
Management, Stock Brokering and Private Equity which will enable NDB
Group to cater to the growing needs of the corporate sector and the
capital market in a developing Sri Lanka.
NDB is one of the fastest growing financial conglomerates in Sri
Lanka, with regional operations spanning to Bangladesh and Maldives. Its
unique financial positioning of the universal banking proposition is
firmly backed by the Bank’s strong financial profile in terms of its
capital base, profitability and asset quality. Maintaining the highest
standards of competence and probity, NDB Group is firmly positioned to
take on the economic growth taking place in Sri Lanka. |