Corporate

Overwhelming response to conversion of NTB's 2010 warrants

The recently concluded conversion of '2010 Warrants' issued by the Nations Trust Bank PLC's (NTB) was an overwhelming success. 41, 928,668 shares were on offer for conversion and the issue was oversubscribed by 12,076,786 shares with warrant holders applying for 54,005,454 shares.

In February 2008, NTB issued two types of share warrants attached to its rights issue of shares.

These warrants were to be converted into shares in 2010 and 2011.

The exercise price for 2010 Warrants was Rs. 30 per share.

Accordingly holders of warrants were entitled to purchase one share each for every warrant held by them for a price of Rs.30.

This being an issue of warrants that took place prior to the coming into operation of the new Listing Rules of the Colombo Stock Exchange, warrant holders were also entitled to apply for additional shares as per the terms of the issue.

The warrants were being traded in the Colombo Stock Exchange until the end of trading on the 'Cut off date' which was February 22, 2010, 2011 warrants continue to be traded in the CSE and will be eligible for conversion on February 22, 2011. A sum of Rs. 1,257,860,040 was raised by the Bank through the 2010 warrant conversion, while 20,963,943 warrants are on offer for conversion to shares in February 2011 at an exercise price of Rs. 35 per share.

Nations Trust Bank PLC is possibly the fastest growing bank in the country. Within a relatively short period of 10 years, the Bank has carved out a respectable market share in almost all business lines in addition to becoming a leading player in the consumer banking, credit card and leasing businesses. The Bank holds the franchise for issuing and acquiring American Express Credit Cards in Sri Lanka.

Nations Trust Bank PLC pioneered the 365 day banking, extended banking hours and Bank-At-Your-Doorstep proposition as part of its strategy to dominate the industry by differentiating itself through customer service. The Bank has incorporated this into its vision and mission and has aligned its products, processes, delivery channels and people towards maximising customer convenience, in order to make life simpler for its customers.

The Bank, which is well known for its innovative products and services, has 39 branches and six personal banking centres.

It has already opened branches in Vavuniya and Batticaloa as part of its North and East expansion strategy, and plans to open its Jaffna Branch in the second quarter of this year.

Browns Group revenue reaches Rs. 2.6 Billion

The Browns Group posted a turnover of Rs 2.6 Billion for the nine month period ending 31st December 2009.

Group turnover recorded a 41% growth over the same period last year. The Group profit stood little over Rs. 808 million for the above period.

A statement issued by the company said 'the Company's future direction is being chartered both as a trading and manufacturing entity while also being a strategic investment vehicle with the intent of increasing share value to its stakeholders.

The company has made several investments into both the financial and plantation sectors which they see as future revenue sources aligned to the Sunshine industries.

Brown and Company now holds over 9% stake in both Seylan Bank PLC and Hatton National Bank PLC.

The company has invested in Mathurata and Pussellawa Plantations through a strategic investment with Taprobane Holdings Ltd. Together Pussellawa and Mathurata Plantations consist of 31 tea estates and nine rubber estates.

Further mini hydro projects, generating three Mega-Watts have been commissioned and several other projects are in the pipeline.

Browns and Company together with Lanka Orix Leasing Company Ltd. invested in Galoya Plantations, whose primary business is the production of sugar which has very high market potential since over 90% of the local requirement is currently imported.

The company intends to venture into ethanol production and power generation through this project.

The Browns Group has also reached market leadership in seven segments that it operates in.

The group holds 54% Market share in motor vehicle batteries, 38% and 65% market share in 2 wheel and 4 wheel tractors, 53% in marine engines, 30% in the office automation segment, 43% in radiators and 42% in the power tool category.

The Browns Group states that it is confident that with the dawn of peace & the anticipated growth of both the agriculture and fisheries sectors the company will be in a position to take advantage of the above with its range or products & services.

BOI chief invites companies to join CSE

by Ananda KANNANGARA

Chairman, Vallibel Finance Ltd, Dhammika Perera last week highlighted the importance of listing the companies in the Colombo Stock Exchange (CSE) said that 80 percent of his companies have been listed in the CSE.

He made these remarks at a media briefing held in Colombo to create public awareness of issuing five million two hundred thousand (5,200,000) ordinary voting shares of the Vallibel Finance at a price of Rs. 22 per share.

Accordingly, the Company is expected to raise Rs. 114,400,000 from the shares and the opening of the Subscription list will be on March 31, 2010 and the closure of the Subscription list will be on the day the issue is oversubscribed on April 23.

Meanwhile, the minimum number of shares for which application may be made is 100 shares of a subscription to the value of Rs. 2200.

Commenting on the share issue, Chairman Dhammika Perera further said a peaceful atmosphere could build a healthy economy in the country, made by the private sector. He also said the stable political condition, low inflation and interest rates could bring a rapid economic growth.

He said the Initial Public Offer (IPO) would create an ideal platform for the public to be partners of the country's development process.

Swarnamahal issues debentures worth Rs. 100 million

Swarnamahal Financial Services Limited will be issuing One Million (1,000,000) redeemable debentures at a par value of Rs. 100 each with the view to raising Rs. 100,000,000.

The prime objective of the issue is to enhance the capital base of the Company to maintain the core capital requirement as stipulated by the Central Bank of Sri Lanka.

These funds will be utilised for short and medium term lending with respect to pawning, leasing and hire purchase, factoring cum Cheque discounting and other financial related facilities.

The debenture issue is scheduled to commence from 31st March 2010.

The applications for debentures are now available at the Head Office of Swarnamahal Financial Services Limited is in Colombo 3 and its branches and pawning centres at Hatton, Ja-Ela, Kandy, Negombo, Nugegoda, Ragama, Ratnapura and Wattala.

The Prospective investors are offered three different types of debenture options: Type A Fixed Interest Rate of 15.00% p.a. payable monthly Type B Fixed Interest Rate of 15.50%p.a. payable annually.

Type C Floating Interest Rate payable annually.

Senior Citizens(persons who are sixty (60 )years of age or above) will be paid an additional interest rate of one percent per annum (1.00% p.a.) above the interest rates of Type 'A','B' and 'C' of the aforementioned.

Swarnamahal Financial Services Limited provides financial facilities to both individual and corporate clients and the stability of the Company withstood the uncertainty crisis situation the industry faced in recent past arising out of collapse of some large and small Financial Institutions in the country.