Sampath Bank shareholders reject rights issue
2008-10-29 13:08:36

Shareholders at Sampath Bank on Wednesday defeated a rights issue proposed through a resolution, the Colombo Stock Exchange (CSE) was informed.

The resolution for the rights issue amounting to 17.2 million shares at a ratio of one-for-four at Rs.100 each was proposed at an EGM today. Trading in Bank shares was temporarily suspended by the CSE due this move.
The rights was announced by the bank in a bid to expand its capital base (TIER I) and finance expansion plans. The bank had planned to issue upto 14.5% of the total issued capital at a price of Rs.117 per share to International Finance Corporation (IFC) through a private placement. Further the bank was to issue shares at Rs.117 per share to ShoreCap. But both IFC and ShoreCap decided not to participate in the issue.

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