11 May 2011

HNB Drops Private Placement in Sri Lanka's Biggest Rights Issue. Funds to be Raised Reduced to Rs 14.28bn to Benefit Existing Shareholders

11th May 2011, www.lankabusinessonline.com

Sri Lanka's Hatton National Bank has changed plans to raise fresh capital by dropping a private placement and increasing a rights issue for existing shareholders, a stock exchange filing said.

The amount of funds to be raised, to strengthen its capital and balance sheet and to support growth, has been reduced to 14.28 billion rupees from at least 15.07 billion rupees earlier.

The statement said HNB's board of directors changed the decision on the share issue "with the view of giving existing shareholders a greater benefit from the rights issue of shares."

The rights will now be in the proportion of one for five instead of one for six.

HNB will raise 12.6 billion rupees by issuing 71,507,870 new shares comprising of 57,480,039 voting shares at 219.50 rupees each and another 1.68 billion rupees by issuing 14,027,831 non-voting shares at 119.50 rupees each.

Originally, HNB said it intends to raise 10.5 billion rupees by issuing 47.9 million voting shares and almost 1.4 billion rupees more by issuing 11.69 million non-voting shares.

The prices at which the shares are to be issued to shareholders have not been changed.

HNB said in its latest filing it has dropped plans to raise at least 3.17 billion rupees from a private placement of 13.5 million shares at a price not less than 235 rupees a share.

With the capital being augmented from the increased rights shares offered to shareholders "a further issue of shares by way of a private placement would not be necessary," the statement said.

Related Info :

Sri Lanka HNB Bank to Raise Mega Bucks over Rs 15bn in Rights Issue and Private Placement

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