'Green light' for NLF 'Rights Issue'

Nation Lanka Finance PLC a Public Quoted Company since 1993 and a Specialized Leasing Company under the supervision of the Central Bank of Sri Lanka since 2005 reached yet another milestone, when it received unanimous support from its shareholders for a `Rights Issue' at its recently concluded EGM.

The rationale for the `Rights Issue' as disclosed to the shareholders was to raise a sum of Rs. 240 M, which will be channelled towards the working capital of the Company, to be utilized for the expansion of business operations, mainly in their core activities of leasing and credit. Given the fact that Nation Lanka Finance shares have been actively traded in the recent past, where it peaked to a high of Rs. 30/25 in October and has maintained steady averages since is an indication that this issue will be a success.

Being offered on a 1:1 basis to existing shareholders and priced at Rs. 12/=, Investors are of the view that this offer has been well timed as it also coincides with the current all-round upward trend witnessed in the share market.

The `Rights Issue' of Nation Lanka finance together with the disposal of some of its assets amounting to Rs. 1.3 B during the next 3 - 4 months, as disclosed at the EGM and the certain structural changes that have been put in place by the Company, including the reduction in its operational costs will auger well for its future bottom line. The Company was also included in the `LMD' magazine under Sri Lanka's first 50 leading listed Companies for three consecutive years from 2002/03 to 2004/05 and also included in the Milanka Price Index in the past.