High Exclusive sources close to Sri Lanka’s oldest former Golden Financial Power House, which is now fallen; The Finance Company PLC says that with its new Rs.40 per share 40 million Ordinary Voting Shares Secondary IPO in cards, that the Sri Lanka’s state owned banking Giants National Savings Bank (NSB), Bankers to the Nation; Bank of Ceylon (BOC) along with Rohini Nanayakkara headed Japanese Financial House Lanka Orix Leasing (LOLC) is bidding to buy major stakes of former Dickman’s Road Financier Lalith Kotelawala owned The Finance Company PLC (TFC).
“The deal will be concluded somewhere in September” our source from The Finance Company PLC added highlighting that The Finance Company expect a better future after the change of the ownership.
“Chairman Lalith Kotelawala will also sell his shares” source told CSE Leaks. However as per shareholders details of The Finance Company PLC, Lalith Kotelawala has 526,427 Ordinary Voting Quoted Shares of the company while another 46,232 Voting Shares of the company owned by Lalith Kotelawala are categorized under Unquoted shares.
As per 30 September 2010 The Finance Co. PLC’s (TFC) major stakes were owned by Ceylinco Investments Co. Ltd (37.13%), Jivaka Lalith Bhupendra Kotelawala (2.93%), Thuraton Investments Ltd. (2.37%), Pershing LLC S/A Auerbach & Grayson & Co. (2.2%), S.N.C.W.M.B. Kandegedera (1.84%) and Marian Martinus Christopher Jeyaraj Fernandopulle (Deceased Former MP of Sri Lankan Parliament) (1.7%).
Meanwhile, the financials of The Finance Co. PLC forecast that company’s income has drastically fallen from Rs.6.69 billion in 2009 to Rs.3.8 billion in 2010 whilst the company had consecutively reported losses amounting to Rs.2.56 billion in 2009 and further loss at Rs.4.28 billion in 2010 after the last profit at Rs.662 million in 2008. It also outlines that shareholders funds stand at negative Rs.2.91 billion while the new Secondary IPO is projected to rectify the negative worth of the company to positive Rs.3.6 billion with issued Secondary IPO public money.
The Finance Co. PLC’s Balance Sheet for the 30 September 2010 says that it has a ‘Mismatch’ between company’s assets and liabilities amounting to Rs.4.08 billion where as the public deposits from 2009 to 2010 has decreased by Rs.1.7 billion from Rs.25.74 billion (2009) to Rs.23.97 billion.
Accordingly, company’s assets are valued at Rs.24.9 billion which is lower than its total liabilities at Rs.28.98 billion.
