US-registered firm to invest Rs. 1.68 b in Commercial Credit for 25% stake
Friday, 31 January 2014 00:35
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Commercial Credit and Finance (COCR) yesterday announced that the Board of Directors has approved the investment of Rs. 1.68 billion in the company by way of a private placement of shares at Rs. 21 per ordinary voting share.
US Delaware incorporated Creation Investments Sri Lanka LLC will be the company to which shares are to be allotted. The move has been approved by the Central Bank and the Securities and Exchange Commission but subject to shareholder consent.
The purpose of the issue is to meet the future capital adequacy requirements and for its future investment activities.
The maximum number of shares to be issued is 80 million voting shares (25% stake eventually) via two tranches. The first will be 48 million shares for a consideration of Rs. 1.008 billion and the second tranche will amount to 32 million shares for a value of Rs. 672 million, before March 2015.
Major shareholder of Commercial Credit and Finance is BG Investments Ltd with a 78% stake whilst Mrs. Vagdevi Fernando holds 7%. Company has 238 million shares in issue at present. Share price closed at Rs. 16.10 whilst Net Asset Per Share is around Rs. 8.
