April 01, 2009 (LBO) – A one-third stake in Sri Lanka’s Seylan Bank being offered to new investors by the regulators will be in new shares with the cash going into boost the capital of the bank.
Ceylinco group currently owns a 24 percent stake of Seylan bank’s voting stock while its board manages several share trusts that control a further 27 percent of voting stock.
Ceylinco group chairman Lalith Kotelawala said in last December he would sell his stake in Seylan Bank to settle depositors of Golden Key. But now sales of some Ceylinco group assets are under court restraint.
Holdings of all existing Seylan shareholders will be diluted by a third following central bank’s use of Monetary Law Act powers to issue new shares and attract an investor with a controlling stake.
Ordinary voting shares will increase to 65 million after the share restructure including the 21.7 million new shares being issued to accommodate the strategic partner.
Seylan also has an outstanding 123 million non voting shares which will also be increased to accommodate the 5.7 billion rupee planned new cash injection.
Investors have till April 15 to express interest, which will