Softlogic Life bids for Sri Lanka Insurance, Asiri bids for Lanka Hospitals

Softlogic Life Insurance has submitted a bid for the acquisition of Sri Lanka Insurance Corporation, while the Asiri Group has placed a bid for the acquisition of Lanka Hospitals Corporation PLC, said Softlogic Holdings Chairman, Ashok Pathirage.

“Pre-arranged funding for these potential acquisitions would be sourced through external offshore counterparties. The completion of these acquisitions, which is subject to a transparent and competitive bidding process, is expected to yield substantial synergies, propelling the Group to dominant market positions in their respective sectors. We have entered into a 99-year lease agreement with Colombo’s Port City Development to establish a state-of- the-art hospital with 500 beds, in partnership with the prestigious Mayo Clinic. This initiative targets the regional medical tourism markets.”

The hospital will enjoy a 25-year tax exemption from the commencement of operations, with a reduced tax rate of 50% for a further 10 years thereafter, offering substantial tax benefits. As part of the Group’s revival plan, the Rs. 10 Bn equity infusion through Rights and Warrants is expected to significantly alleviate financial pressure, with the proceeds being allocated for debt settlements.

“These initiatives are expected to contribute significantly to the Group’s financial rewards,’ he said.

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