20000315

FCSC acquires

60 percent stake in

Lanka Securities

HARIS ZAMIR

KARACHI: First Capital Securities Corporation (FCSC) of Pakistan has taken 60 percent stake in Lanka Securities Limited, the stock broking company jointly owned by the Bank of Ceylon and the Merchant Bank of Sri Lanka (MBSL).

According to an official of First Capital Securities Corporation, a memorandum of understanding for transferring the shares was signed last week between the Bank of Ceylon, Merchant Bank of Sri Lanka Ltd and FCSC. This transaction was facilitated by Citi National Investment Bank.

Dayani de Silva, chairperson of the Bank of Ceylon, Sunil G Wijesingha, managing director, Merchant Bank of Sri Lanka Ltd., and Salman Taseer, chairman and chief executive officer, FCSC, signed the memorandum. The transfer of shares would take place after the relevant approvals and other procedural formalities are concluded.

The Bank of Ceylon and MBSL would continue as shareholders of Lanka Securities Ltd. This deal shows their trust in the management of FCSC which is likely to provide a big boost to the company in Sri Lanka's equities and corporate market.

FCSC, a leading financial services and investment company in Pakistan, is listed on the Karachi and Lahore Stock Exchanges. It is the largest capitalised brokerage house in Pakistan and also has a significant business presence in the Middle East.

This joint venture would realise the synergies within the new group in terms of improving research and operational capabilities of Lanka Securities Ltd. Another major reason for the partnership is the global research of First Capital Securities and its objective to enhance Middle Eastern and other foreign investment in both countries Ñ Sri Lanka and Pakistan.