Cash Call

Oct 29, 2008 (LBO) – Sri Lanka’s Sampath Bank said in a stock exchange filing that it has called off a rights issue after shareholders voted against it at an extraordinary general meeting Wednesday.

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The one for four rights issue was planned at an issue price of 100 rupees a share but Sampath Bank shares were trading at 78 rupees Wednesday.

Last month, the bank announced it had cancelled a private placement of shares with the International Finance Corporation after it was informed by the IFC it needs more time to decide.

The bank earlier said that another foreign investor which planned to take part in the private placement, ShoreCap International, had also pulled out.

The private placements were to take place at 117 rupees a share.

Sampath Bank had planned to raise 1.7 billion rupees through the rights issue of 17.2 million shares to increase its capital base to keep pace with expansion.

The bank now has 68.9 million issued shares.