25 October 2022 12:00 am Views - 157
Softlogic Finance PLC, a subsidiary of Softlogic Capital PLC, has revealed plans to go for a rights issue to raise over Rs. 850 million to infuse fresh capital for adherence with capital adequacy requirements as well as supporting its digitalization drive and business expansion of the company.
The rights issue will be implemented in the proportion of one hundred (100) new ordinary shares for every four hundred and twenty three (423) existing ordinary shares held by the shareholders of the company for a cash consideration of Rs. 7.31 per new share. The company proposes to increase the issued share capital by way of a rights issue of 116,483,901 ordinary shares at Rs. 7.31 per share for a total consideration of Rs. 851,497,316.
Commenting on the rights issue Ivon Brohier, Acting Chief Executive Officer, Softlogic Finance PLC stated, “As we navigate through this unprecedented situation in the country following two years of the pandemic and the worst financial crisis the country has ever seen, Softlogic Finance continues determined on expanding business and enabling a digital transformation where unparalleled customer convenience will be placed at the forefront of each process.
The Softlogic Group has probably the largest consumer network in the country and represents a huge opportunity for our company to be part of a large and valuable ecosystem. This capital infusion will provide the vital impetus to realize our key objectives.”
The infusion will improve Tier 1 Capital, whilst ensuring compliance with the Capital Adequacy Requirements as stipulated by regulations. The 116,483,901 new ordinary shares will be listed on the Diri Savi Board of the Colombo Stock Exchange (CSE).