Microlender in monster deal
Hong Kong financial giant, The Bank of East Asia and Sri Lanka’s LOLC announced on March 17 that they have jointly acquired a majority stake in Prasac Microfinance, Cambodia’s largest microfinance institution by assets, in what could be the largest acquisition of a Cambodian lender to date. According to a joint company release, The Bank of East Asia and LOLC acquired a controlling share of Prasac by purchasing minority stakes held by Dragon Capital Group Ltd, Belgian Investment Company for Developing Countries SA and the Netherlands Development Finance Company. The acquisition raises LOLC’s existing holding from 22 percent to 70 percent, with BEA holding 21 percent. Prasac retains the remaining 9 percent stake.
