Seylan explains inability to divest stakes held by trust companies

Seylan Bank in a CSE filing pointed out its reasons behind the inability to fulfil listing rules by 1 March to dissolve share owning schemes saying that pending court actions have prevented the process from materialising.

Six trust companies which were established in 1995, 1999 and 2000 respectively have acquired 7.2% of ordinary voting shares which translate to 12.75 million shares. The shares were obtained at market price from the bank in different time intervals; in which the bank itself funded the purchase of shares.

In its statement the Bank has mentioned that the two parties are in discord noting that the shares owned by the six trust companies are not being held for the benefit of employees and thus the former wishes to purchase the shares from the latter and subsequently credit the proceedings.

However court actions have prevented the share owning companies to dispose or transfer these shares until the final date of the court action as there are interim injunctions that have been issued by the District Court.