Lasco Financial Services Limited (LFSL) has signed an agreement with Supreme Ventures Financial Services Limited (SVFSL) to take over the MoneyGram remittance operations of SVFSL. The Transaction has been approved by MoneyGram lnternational and is subject to the approval of the Bank of Jamaica. The SVFLS MoneyGram remittance services are offered through 88 locations including the Supreme Ventures regional retail centres, subagents and select Post Offices. The consideration for this deal is J$38 million and Lasco Financial expects that this transaction to be accretive to earnings.
Company Background and Market Performance
Lasco Financial which was recently listed on the Jamaica Stock Exchange Jr Market along with its counter parts, Lasco Manufacturing and Lasco Distributors at J$2.50 each, is now trading at J$5.03. The stock is up 94.21% Year to date, and 109.58% this quarter. There is also a noticeable increase in the volumes traded.
Lasco Financial Services Limited was incorporated in 2004 and is licensed by the Bank of Jamaica to operate a Cambio, which trades under the name Lasco Cambio, and is in the business of buying and selling of foreign exchange. The acquisition proceedings are expected to conclude on December 1, 2011.
Supreme venures suggests that the transaction will strengthen the Balance Sheet of their company, reduce operating costs and allow the company to focus on its core business of lottery and gaming.