Prime Finance defers Rs. 527 m Rights Issue

Prime Finance PLC has announced the deferment of the Rs. 527 million Rights Issue, first announced in February.

It was to issue 41.8 million shares on the basis of 19 for every 36 held at Rs. 12.60 per share.

It said the Board of Directors at a recent meeting considered the said issue of shares in the context of the economic and social fallout from the COVID-19 pandemic affecting the country, and unanimously decided to postpone the same until relative normalcy is restored to the financial and stock markets. 

The Board also noted the commitment from Prime Lands Ltd. to renounce the required amount of shares from their Rights allotment in order to facilitate the Company to comply with public holding requirements in terms of Rule 7.13.1 (b) of the Listing Rules of the Colombo Stock Exchange.

The Board of Directors further noted the flexibility given by Central Bank of Sri Lanka by their letter dated 31 March 2020 with special reference to deferment of the requirement for enhancement of Core

Capital to Rs. 2 billion until 31 December 2020.

Prime Finance said that a further market announcement will be made on the tentative timelines with regard to the Rights Issue in due course.