Nation Lanka Finance strikes Rs. 1.4 b equity deal with GEM
Thursday, 6 February 2014 00:01
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In a major breakthrough for continued success, Nation Lanka Finance Plc said it has entered into an agreement for Rs. 1.4 billion in equity (shares and warrantswith the Global Emerging Markets Group (GEM).
The agreement is with GEM Global Yield Fund LLC SCS, an investment fund of GEM, which is an alternative investment group that handles a diverse set of invest vehicles across the world.
GEM Global Yield Fund LLC SCS will invest in a private placement of new shares to be issued coupled with warrants totalling approximately Rs. 1.4 billion, not exceeding 29.9% of the issued shares of National Lanka Finance Plc subsequent to the said issue.
The issue of new shares by way of a private placement and warrants will be subject to the Company obtaining shareholders and regulatory approval.
At present the company has around 250 million shares in issue and net asset per share is Rs. 1.17. It has assets worth Rs. 4.3 billion as at end September 2013, up from Rs. 3.6 billion a year earlier. Liabilities amounted to Rs. 4 billion, up from Rs. 3.15 billion.
The company in the first half of FY14 posted a profit of Rs. 4.5 million, as against a loss of Rs. 110 million a year earlier. However it has retained loss of Rs. 1.62 billion whilst total equity was Rs. 293.4 million.
Access Equities Ltd. owns a 34% stake in Nation Lanka Finance, Nawaloka Construction has 7% and J. Rudra holds 7.6%. The Board comprises Chairman Jayantha Dharmadasa and Director Asanga Seneviratne.
National Lanka said further details of the private placement and warrants would be released shortly.
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.
With 23 branches throughout Sri Lanka during the past 25 years NLF says it has 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.
