Sinhaputhra Finance eyes amalgamation with Commercial Leasing by 21 March

Sinhaputhra Finance PLC (SFL) yesterday announced that the planned amalgamation with Commercial Leasing and Finance PLC (CLC) is proposed to be effective from 21 March subject to complying with a few prerequisites.

SFL said that it had received approval in principle from the Central Bank for the amalgamation with CLC in terms of the masterplan for consolidation of Non-Bank Financial Institutions. CLC will be the continuing entity.

The amalgamation will commence immediately subject to further approvals by CBSL and CSE approving CLC for listing of shares of CLC arising from the amalgamation of SFL as well as approval of special resolutions and the concurrence of the secured lenders to SFL.

It said holders of 69.66 million ordinary voting shares and 6.7 million preference shares of SFL would receive 7,803 new ordinary voting shares of CLC for every 10,000 shares of SFL. The move will see 54.36 million new shares to be issued in CLC constituting 0.85% to the holders of both ordinary and preference shares in SFL.

The issue and listing of shares by the amalgamated entity is subject to the CSE approving the issue and obtaining shareholder approval (where applicable) at a General Meeting.

The stated capital of SFL is Rs. 80.379 million. There are 1,008 public shareholders of SLF's ordinary shares with a public holding of 45%. The float adjusted market capitalisation of SFL is Rs. 760.3 million. There are 538 holders of preference shares. The float adjusted market capitalisation of these shares is Rs. 95.9 million. CLC has 6,824 public shareholders holding 1.779% stake and float adjusted market capitalisation is Rs. 3.39 billion.

SFL share price closed at Rs. 19.50 yesterday down by 10 cents. CLC share price closed at Rs. 28.60, up by 50 cents.