COLOMBO: Nation Lanka Finance PLC is planning to raise Rs.502.3 million through a rights issue, subject to the Colombo Stock Exchange and shareholder approval.
To this end, the company is expected to issue 502,326,522 shares priced Rs.1 each, at a proportion of two shares for every one share held by the existing shareholders.
The purpose of the cash call is to strengthen the core capital position of the company.
A key promoter of Nation Lanka Finance, Asanga Seneviratne, recently exited from the company by divesting his 33 percent stake in the company in a deal worth of Rs.300 million.
The shares were bought by the other two main shareholders, Nawaloka Construction and Non-Executive Director of the company Victor Ramanan.
Despite 33 percent of Nation Lanka changed hands, analysts said a mandatory offer obligation may not arise as the buyers of shares may not be acting in concert.
For the year ended March 31, 2015, Nation Lanka Finance PLC reported a net loss of Rs.447.5 million, against a net loss of Rs.139 million in the previous year.
