NDB abandons strategic investor move

The National Development Bank (NDB) has abandoned the move to have a strategic investor in to the company. 

In a filing to the CSE, NDB said the decision was in view of the current market conditions and since no finality has been reached with a strategic investor who is/was in the process of carrying out a detailed evaluation with a view to investing in the unsubscribed shares arising from the recent Rights Issue.

“The Board has decided that it will cease to further pursue exploring avenues in terms of powers vested in the Board under Articles 7 (v) and 7 (vi) of the Articles of Association in this respect,” NDB said.

Consequently, the allotment of shares in excess of the single shareholding restrictions imposed under the Banking Act which was stayed in respect of some affected existing shareholders of NDB (with their consent) will not be allotted. Steps will be taken by NDB to return the funds retained in lieu of such un-allotted shares to the respective shareholders in due course, NDB added.

NDB’s Rights Issue last month was one for three (amounting to 59.15 million shares) at Rs. 105 per share with an aim to raise Rs. 6.2 billion. However, only 32.854 million shares worth Rs. 3.45 billion were allotted/listed, taking into consideration the restrictions placed by the Banking Act.