SLT to strengthen state shareholding
View(s):Sri Lanka Telecom (SLT) is to strengthen state shareholding by issuing shares through a private placement to state-owned businesses and Contribution Funds.
The aim is to fulfill 10 per cent minimum limit of the public float imposed by the Colombo Stock Exchange, SLT sources said.
Employees Provident Fund, Sri Lanka Insurance Corporation Ltd and National Savings Bank have been directed to invest in the equity of SLT through the private placement subject to the approval of their respective boards.
The cabinet of Ministers approved the joint proposal presented by Minister of Finance Mangala Samaraweera and Minister of Telecommunications, Foreign Employment, and Sports Harin Fernando for this purpose.
This will pave the way for state-run funds and banks to buy SLT shares to meet a public float requirement, a senior official of the SLT said. Secretary to the Treasury (49.5 per cent) and Global Telecommunications Holdings NV, (44.9 per cent) are the two main shareholders of SLT.
The company’s present issued capital is Rs. 18 billion represented by 1.8 billion ordinary voting shares. (BS)