Nation Lanka Finance goes for Rs. 500 m rights with free warrants

Nation Lanka Finance (CSF) has announced a one for four rights issue at Rs. 10 per share with attached warrants (subject to approval).

The company said three warrants will be issued with every five rights shares subscribed, with a right to convert into one ordinary share in July 2013. Warrants will be issued free with rights – up to the extent of rights subscribed. Exercise price of warrant would be Rs. 12 per warrant.

The funds will be utilised to meet core capital requirement of the Central Bank of Sri Lanka (CBSL) (a pre-requisite condition to register CSF as a registered finance company under the Finance Companies Act), to finance the credit and real estate business activities of the company, to invest in shares and to invest in subsidiaries of the company.

The number of shares in issue is 200 million whilst Nation Lanka Finance’s stated capital is Rs. 1.31 billion.