CSE approves Softlogic Finance Rs 1.9 bn Rights Issue
View(s):Softlogic Finance PLC has received Colombo Stock Exchange (CSE) approval for its Rights Issue of Rs. 1.9 billion with the Extraordinary General Meeting of the company fixed for November 9 while the funds are expected to be received by the company by end November.
The Rights Issue is fully underwritten by its immediate parent Softlogic Capital PLC and the entire equity infusion is hence guaranteed, the company said in a media release.
The Softlogic Group has also announced purchasing the shares of Abans Finance PLC consequent to which Abans Finance PLC will be amalgamated with Softlogic Finance PLC with the latter being the surviving entity. The transaction is currently pending approval of the regulator, the Central Bank. The combined entity, post-merger, will create a stronger and bigger company that is estimated to have total assets of Rs. 32 billion, customer deposits of Rs. 22 billion and customer advances of Rs. 26 billion, whilst complying with all of the regulatory requirements of the Central Bank including the capital adequacy of the company. The capital position of the amalgamated entity is expected to be Rs. 4.9 billion by March 31, 2021.
“Softlogic Finance is upbeat on its future prospects that will deliver a robust business strategy enhanced by digitalisation and delivered by the new management team of the company that is in place since May of this year,” the statement said.
The Softlogic Group has long viewed financial services as an industry with substantial opportunities for growth. This proposed merger compliments Softlogic Finance in its ambition to increase its footprint in the NBFI sector, particularly in the dynamic leasing category, which represents an area of strategic focus for the company.
The company is currently re-evaluating its product mix and service offering, and work is in progress to streamline its systems and processes to suit a digitised environment, in order to prepare the company to confidently face the constantly changing external landscape and sustainably deliver a distinctive and easily accessible value proposition to its customers.