Sri Lanka's Trade
Finance and Investments PLC and Sri Lanka's Commercial Credit and Finance PLC
have declared their intention to merge the remaining company with the latter.
They reported that the Central Bank approved the proposed amalgamation of Trade
Finance and Commercial Credit by letter dated 21 January 2020. Further, this
merger was also supported by the Board of Directors of Trade Finance and
Investments PLC and the Commercial Credit and Finance PLC (COCR) on 23
September 2020.
The scheduled merger
is subject to the approval of the amalgamation by the shareholders of Trade
Finance and COCR in compliance with Section 241(5) of the Companies Act No. 7
of 2007. An extraordinary general meeting of COCR shareholders will convene to
discuss and, if considered necessary, pass the relevant resolutions authorising
the amalgamation mentioned above and related issues.
COCR currently
owns 99.65 per cent of Trade Finance and Investments PLC's ordinary shares, and
such claims will cancel according to Section 240(3)(a) of the Companies Act No.
7 of 2007 upon amalgamation. For each share owned in such a stock, the other
shareholders of Trade Finance and Investments PLC will pay Rs. 60, and no claims
in COCR and Finance PLC will allocate.
Consequently,
after the amalgamation takes effect, the number of shares in Commercial Credit
and Finance PLC issued will remain unchanged. Two hundred forty-seven million
previously reported capital would be Rs. 2.15 billion after amalgamation. The
modified floated market capitalisation was Rs. 11 million as of 21 September
2020, and it will be Rs. 984 million after amalgamation. The percentage of
public holdings as of 21 September 2020 was 0.35%, and it will be 13.22% after
amalgamation.
Sri Lanka ended
2018 with inflation of 4.8 per cent, and economic growth estimates at around 2.5
per cent of GDP. Most central banks globally have lowered interest rates.
India's Reserve Bank has lowered interest rates to counter India's economic
slowdown. Accommodation, food service, and transportation services have
contracted following the attacks on Easter Sunday.
The observations
of the local industry savant that Sri Lanka's goal of US$ 5 billion IT exports
was attainable indicate the developments recorded by the IT sector including
the emergent prospects in the field. Interested foreign businesses/investors
could look at investing ventures in Sri Lanka's IT sector and gain profits
while expanding the local IT market.
No comments:
Post a Comment