CSE approves Softlogic Finance Rs 1.9B Rights Issue
Softlogic Finance PLC received Colombo Stock Exchange (CSE) approval for its Rights Issue of Rs 1.9 billion. The Rights Issue is fully underwritten by its immediate parent company Softlogic Capital PLC and the entire equity infusion is guaranteed by it.
The Softlogic Group has also announced purchasing shares of Abans Finance PLC consequent to which Abans Finance PLC will be amalgamated with Softlogic Finance PLC with the latter being the surviving entity.
The transaction is currently pending approval of the regulator, the Central Bank of Sri Lanka. The combined entity, post-merger, will create a stronger and bigger company that is estimated to have total assets of Rs 32 billion, customer deposits of Rs 22 billion and customer advances of Rs 26 billion, whilst complying with all of the regulatory requirements of the Central Bank of Sri Lanka, including the capital adequacy of the company.
The capital position of the amalgamated entity is expected to be Rs 4.9 billion by 31 March 2021.