Saturday Nov 30, 2024
Saturday Nov 30, 2024
Monday, 2 November 2020 02:03 - - {{hitsCtrl.values.hits}}
The management of Nation Lanka Finance and Sinhaputhra Finance exchanging the Term Sheet agreeing to seek an amalgamation of the two companies
The Boards of Directors of Nation Lanka Finance PLC and Sinhaputhra Finance PLC last week executed a Term Sheet agreeing to seek an amalgamation of the two companies.
The proposed amalgamation will be subject to valuations which have been commissioned on the two entities and the receipt of approval from the Monetary Board thereafter.
The Boards of the two companies are of the opinion that the proposed amalgamation will result in the two meeting the core capital requirements that have been mandated by the Monetary Board.
This transaction was organised and carried out by Nation Lanka Equities Ltd.
As at 30 June, Nation Lanka Finance (NLF) had Rs. 8.4 billion in assets, down from Rs. 8.7 billion as at 31 March. Net assets per share was Rs. 0.76.
Liabilities amounted to Rs. 7.3 billion, down from Rs. 7.5 billion.
Retained losses stood at Rs. 237 million, up from Rs. 193 million. After tax loss for quarter ended 30 June was Rs. 44 million as against a profit of Rs. 34 million.
The major shareholders of NLF include V.R. Ramanan (55.5%), U.H. Dharmadasa (17%) and H.K.J. Dharmadasa (6%). The company has 13,510 shareholders.
Sinhaputhra’s assets amounted to Rs. 6.09 billion as against Rs. 6.3 billion. Net assets per share was Rs. 13.19.
Liabilities were Rs. 5.2 billion, down from Rs. 5.4 billion. It was carrying an accumulated loss of Rs. 183 million, up from Rs. 146 million as at 31 March. After tax loss for the 30 June quarter was Rs. 39.4 million as against a profit of Rs. 9.8 million.
Major shareholders of Sinhaputhra Finance include Singhe Capital Investments Ltd., (55%0, Bimputh Finance PLC (20%). The public holding is 45% with 957 shareholders.
