The Finance PLC (TFP), on its way back from the brink, says that many foreign investors are showing interest in a stake in the company, now that its growth potential is established. “Many foreign parties from Europe and India are interested in acquiring a part stake in The Finance,” Preethi Jayawardena, TFP Chairman told the Business Times. He said with the guidance of the new director board which took office some seven months ago, the company is striving to achieve its breakeven paint operational profit.
He added that the property-rich company will eye acquisitions and diversification after this becomes a reality. He noted that 2010/2011 witnessed several key measures being adopted to restructure the company, in order to rectify the tumultuous financial issues that took place with Ceylinco Consolidated at the helm. “As a first measure at the direction of the Central Bank, the public issue of voting ordinary shares and the conversion of Rs 2 billion fixed deposits into non- voting shares was successfully completed in February," Mr. Jayawardena said, adding that the fresh capital infusion of Rs.1.6 billion by way of a public share issue and the offer to the deposit holders to convert 10% of the deposits to equity strengthened the organization and also led to an increase in business activities in the latter part of the year. He explained that land sales is TFP’s main income source and the company owns Rs. 5.5 billion worth of land as at now.
He said the company plans to extend its branch network to 80 from its current 60. He added that now there are more controls in land purchases and sales unlike earlier. “There’s a committee for these transactions and a single person can’t take any decisions,” he noted.
The company has two floors at the Ceylinco Building in Fort and plans to run or outsource the management of Akasa Kade (the famous restaurant) as well. "We are in the process of negotiating to obtain this floor (where the restaurant is),” he added.
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