Softlogic
Finance PLC, a Softlogic Capital PLC affiliate, has reported a capital
injection of Rs. 1.9 billion through a Rights Issue. For every five shares
owned by ordinary shareholders, the Company will issue eight new shares, and
the shares will be allocated provisionally to each shareholder at Rs 11.50 per
share.
The Rights Issue
will allow Softlogic Finance to follow its creative business strategy focusing
on a secure mix of goods. The Company has recently undergone a comprehensive
restructuring of its top management, taking over from Priyantha Wijesekera as
Chief Executive Officer in March this year, and making new hires for many leading
management roles. The current management team has an outstanding track record
and was hand-picked to design and execute the Company's unique journey.
Softlogic is re-evaluating
its product mix and services portfolio, and work is underway to streamline
structures and processes in a digital context to prepare the Company for an
evolving environment so that the business can provide its consumers with a
distinctive and easily accessible value proposition.
The Softlogic
Group's capital investment underlines its dedication to the Softlogic brand,
with which consumers across Sri Lanka are implicitly familiar and trusting.
Softlogic Finance enjoys this successful franchise with Rs. 17.1 billion of
consumer deposits and Rs. 18.2 billion of client advances. The Company's
overall assets as of March 31 were Rs 21.7 billion.
The Softlogic
Holdings PLC considered to be one of the most competitive and progressive
conglomerates in Sri Lanka, with industry leaders across crucial market
verticals; ICT, Healthcare, Banking, Financial Services, Automobiles and
Leisure.
Today the Company
boasts more than 15,000 square feet spread over five branches. Cotton
Collection's 200-strong workforce includes a home-bred design team that curates
bohemian, free-spirited collections that over the years have carved out a niche
market share.
OSL Take - The decision
to infuse Rs. 1.9 b capital through Rights Issue by Softlogic is an indication
of the strength of Sri Lankan business entities and the possibility for growth
in other Sri Lankan companies. Foreign businesses/shareholders could look at
investing in Sri Lankan companies or form joint ventures to expand the
businesses. Sri Lanka has made trade contracts and trade allowances to its
benefit. Hence, investments in a Sri Lankan company and supporting expansion
into the global market would ensure definite returns.
The accolade won
by Sri Lanka's Softlogic Restaurants is a sign of the high standards maintained
by the country's hospitality sector. Also, several Sri Lankan diners have
ventured into international markets as well. Therefore, foreign businesses
could discover opportunities for forming partnerships and joint enterprises
with local companies to venture into the South Asian region.
The continually
improving ease of doing business atmosphere in the country and the success of
many local companies are positive signs for foreign businesses to explore
business/investment opportunities in Sri Lanka or to look at creating business
alliances/joint ventures with local firms.
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