LOLC receives first tranche of USD 422mn from the sale of PRASAC Micro Finance Cambodia

LOLC receives first tranche of USD 422mn from USD 603mn sale of 70% stake in the PRASAC Micro Finance Cambodia to Kookmin Bank, South Korea.

Further to the last disclosure made on 6th January 2020, LOLC Holdings PLC made the following disclosure to the CSE today.

On 6th January 2020, LOLC International Private Limited of Singapore (subsidiary of LOLC Holdings PLC) along with the other minority shareholders of PRASAC Microfinance Institution Limited of Cambodia (PRASAC) entered into a Share Purchase Agreement and a Shareholders Agreement with Kookmin Bank, the largest Commercial Bank in the Republic of South Korea, for the sale of PRASAC's 
entire shareholding, subject to receiving final approval from the National Bank of Cambodia (NBC) and the Financial Services Commission of Republic of South Korea.

PRASAC is the largest Micro Finance Institution in Cambodia. The total payment to be received by LOLC International Private Limited for the sale of its 70% stake in PRASAC is USD 603 million.

LOLC Holdings PLC announced that upon receiving final approval from the National Bank of Cambodia (NBC) and the Financial Services Commission of Republic of South Korea, LOLC

International Private Limited has now received USD 422 Mn from Kookmin Bank being the first tranche of the sales proceeds for the transaction.

In terms of the above-mentioned Share Purchase Agreement the balance USD 181 Mn will be received in 2022.

PRASAC was LOLC Group's maiden foreign investment in 2007. LOLC owns the fourth largest micro finance company in Cambodia and also operates Micro Finance Companies in Myanmar, Philippines, Indonesia, Pakistan, Zambia and Nigeria.