Muthoot Finance, a leading gold finance company has acquired 30 percent stake in Asia Asset Finance. The deal is expected to be worth around USD 2.1 million, reports say.
With this, Muthoot Finance expands into Sri Lanka. Its stake in the Lankan financial service firm listed on the Colombo stock exchange is of 1,67,785,600 shares, bought from Asia Capital. Asia Capital was a major stakeholder in Asia Asset. Muthoot will support Asia Asset in operationalising loans against gold jewellery, in the Sri Lankan market, in turn expecting the business profits and simultaneously the value of the company to improve, reports say. This would Asia Asset’s portfolio has been in the business of loans since the 1970s, spanning retail finance and business loans. The company has 11 branches in Sri Lanka, reports say.