Value of Nation Lanka Finance appreciated with listing of subsidiary

Friday, 31 January 2014 01:12 - - {{hitsCtrl.values.hits}}

The recently oversubscribed public offer of Millennium Housing Developers Ltd. (MHDL) has led its parent company Nation Lanka Finance PLC (NLF) to increase the net value of NLF by Rs. 400 million and to experience a capital appreciation despite diluting its stake in MHDL to 68% from previous 77%. Market analysts identify the public offer as a prudent decision taken to increase the financial flexibility on both the holding company and its subsidiary - NLF and MHDL in terms of meeting future development goals and to support the current operations.

A part of the funds raised through the public offer will help MHDL to cater to the growing demand for quality houses in valued residential areas offered at attractive prices. NLF Chief Executive Officer Charith Amarasekara, elaborating on the objectives of the issue and its success said: “There are plans to launch five key housing projects in the Greater Colombo area, each consisting 150 housing units. In addition to this, MHDL expects to expand the ongoing three projects in the Urban Range into seven projects. MHDL is also looking at increasing its Urban Range – gated housing projects into two large scale housing projects and seven urban range 40 - 50 housing unit projects. Most of these projects will be completed before 2017. “MHDL is a key subsidiary of ours where we held controlling stake. But with the successful completion of IPO, our shareholding was reduced to 68%, a strategic move, allowing the public to invest. MHDL incorporated in 1998 has a vibrant history. The company was the pioneers in mega township projects in Sri Lanka including the Millennium City in Athurugiriya. In 2012 MHDL entered into urban and semi development projects, launched millennium urban range in Maharagama and Piliyandala, launched the project in Seeduwa, and launched the Millennium Terrace project. MHDL has recorded Rs. 98 million in net profits during the last financial year and well on its way to secure Rs. 120 million this financial year. MHDL will continue as a strong subsidiary of NLF continuing to support our future plans,” he added. NLF is a Public Limited Liability Company incorporated in Sri Lanka on 15 July 1987 under the Companies Act No. 17 of 1982 and re-registered under the Companies Act No. 07 0f 2007. The company is also a finance company approved and regulated by the Central Bank of Sri Lanka. During the past 25 years NLF built its reputation on strong connections with local communities, a deepening understanding of sustainability is a commitment to a broader range of stakeholders and interests. With 23 branches throughout Sri Lanka, NLF is well placed to support our communities at a local and international level using its strategy is built around customers, putting them at the center of everything NLF does and helping them realise their potential. The NLF Board comprises of Chairman Jayantha Dharmadasa and Director Asanga Seneviratne.