LSE Capital Limited has entered into a Memorandum of Understanding with an unlisted financial services company for the proposed disposal of its shareholding in its subsidiary, Digital Custodian Company Limited. The move comes roughly four months after LSE Capital increased its stake in DCCL to just over 54 percent by acquiring an additional equity stake from a co-investor, a transaction that had given the company clear majority control over DCCL’s digital custody and financial infrastructure operations, making this proposed disposal a notable reversal of that earlier consolidation.
DCCL is presently jointly owned by LSE Capital Limited, LSE Financial Services Limited, and LSE Ventures Limited, holding 54, 36, and 10 percent of its issued share capital respectively. The three companies operate under the broader LSE Enterprises umbrella, and DCCL itself underwent a significant capital restructuring late last year through a Scheme of Compromises, Arrangement and Reconstruction sanctioned by the Lahore High Court, which redistributed shares and shifted liabilities between LSE Financial Services and DCCL to clean up both companies’ balance sheets. That prior restructuring effectively slimmed down both entities’ paid-up capital by roughly 24 percent, giving DCCL a leaner asset base heading into this latest proposed transaction.
The proposed transaction remains subject to the completion of agreed terms and conditions along with the fulfillment of requisite corporate and regulatory approvals, with a transaction closure deadline set for November 15, 2026. Structuring the deal with an unlisted financial services company as the counterparty, rather than another publicly listed entity, means the buyer’s own operations remain outside the immediate scrutiny of public disclosure requirements that apply to LSE Capital itself as a Pakistan Stock Exchange-listed company.
LSE Capital operates as a Pakistan Stock Exchange-listed investment and financial services company involved in merger and acquisition advisory, restructuring, corporate finance, investment management, and capital market-related businesses. The proposed disposal of its DCCL stake would mark a further step in the ongoing reshaping of ownership and capital structure across the LSE Enterprises group of companies, following the balance sheet restructuring at DCCL and LSE Financial Services late last year, and adding to a pattern of active portfolio management across LSE Capital’s various subsidiary holdings. The information was disseminated through a notification to the Exchange.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
