Business
NDB summons EGM to get shareholders approval to raise Rs. 11 bn. zero cost equity
The National Development Bank PLC (NDB) has summoned a virtual extraordinary General Meeting on April 9 to get shareholder approval for a rights issued and a private placement of shares to the Norwegian Development Fund for Developing Countries fully owned by the Government of Norway to raise over Rs. 11.1 billion zero cost equity capital for the bank.
Existing shareholders of NDB will get their rights shares at Rs. 75 per share while the Norwegian fund will pay Rs. 82.50 – both less than half the bank’s net asset value per share of Rs. 192.49.
The rights issue/private placement will see the bank issuing approx. 106.78 million new shares by way of rights and up to approx. 37.67 million shares through the private placement in the proportion of 28 new shares for every 61 already held (rights) at Rs. 75 a share. Unsubscribed shares will be aggregated and allotted to shareholders seeking additional shares at the same 75-rupee price on what the bank’s directors regard to be a “reasonable basis” depending on availability and subject to shareholding restrictions placed by the Banking Act.
Shares remaining unsubscribed will be initially allotted to Norfund up to 9.99% of bank’s equity and thereafter, if available, to others including legal entities seeking unsubscribed shares, NDB said last week in a circular to shareholders. This will be subject to Banking Act restrictions.
It said that the maximum number of shares Norfund can subscribe for will not trigger the SEC’s mandatory offer requirement under its Takeovers and Mergers Code. This requires any person/entity acquiring up to 30% of any listed company to offer other shareholders the highest price paid for the share in the preceding 12-month period.
Norfund which currently hold a stake in Soflogic Life Insurance as its only investment here
is looking for further potential investments in Sri Lanka, NDB said. This fund which has committed investments worth over 2.88 million USD up to the end of 2019 prioritizes investments in clean energy, financial institutions, green infrastructure and scalable enterprises aligned with UN sustainable development goals, has invested in 163 projects in 29 core strategy countries in Asia, Africa and Latin America.
If it succeeds in achieving its objective of investing in a 9.99% stake in NDB, it will be the second largest shareholder in the bank behind the EPF which holds 10%. Other big shareholders include the Bank of Ceylon (8.36%) Sri Lanka Insurance Corporation (SLIC) general fund (6.39%), SLIC life fund (4.37%) and Dr. Sena Yaddehige (4.37%).
Softlogic Insurance, ETF and Perpetual Treasuries, Richard Pieris, HNB and Phoenix ventures are the other biggest private shareholders while individually, Messers. Ashok Pathirage and Merril J. Fernando are also in the Top 20 list of shareholders of NDB.
In the event Norfund is unable to to secure any shares under the rights issue, a maximum of 37.67 million ordinary shares will be allotted to it at the Rs. 82.50 price raising over Rs. 3.1 billion zero cost equity for NDB.
“The private placement will only take place in the event Norfund is unable to get the 9.99% stake under the rights issue,” NDB said.
The funds raised will be used to further strengthen NDB’s equity base and improve its capital adequacy ratios in line with Central Bank guidelines, NDB said
Two years ago an NDB rights issue (at a much higher price than this) was heavily under-subscribed in the context of the bank’s share trading in the secondary market at prices substantially below the rights price. Given the structuring of the present offer, analysts do not expect an under-subscription of this issue.
The NDB share closed on Thursday at Rs. 80, trading between Rs. 79-80 for a small quantity of 28,343 shares transacted in 66 trades. Friday’s close was also Rs. 80 with 30,060 shares transacted between Rs. 79.20 – 80 in 47 trades.
The rights may be traded on the CSE and brokers expect them to command a price.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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