Tepid response for Fairway Holdings mandatory offer on Multi Finance

3 July 2017 09:33 am - 0     - {{hitsCtrl.values.hits}}

A A A

The mandatory offer made on the balance shares of the troubled Multi Finance PLC by its majority shareholder, Fairway Holdings (Pvt) Limited, ended last week with very little response from the minority shareholders.
The total number of shares for which acceptance of the offer had been received was 74, 065 ordinary shares, amounting to just 0.11 percent of the total voting rights of Multi Finance. The mandatory offer was given for 22.5 million shares at Rs.132.40 a share. 
In a Central Bank-backed deal in February, Fairway Holdings acquired 64.63 percent stake in Multi Finance for Rs. 550.9 million through a private placement as the latter failed to meet the minimum capital required from a finance company in operation.   
The acquisition triggered the Securities and Exchange Commission’s Takeovers and Mergers Code.
The then majority shareholders of Multi Finance, the controversial Entrust Holdings Limited and Entrust Limited, which failed to capitalize the company, was barred by the Central Bank from taking part in the private placement due to alleged irregularities. 
The primary dealer under the Entrust Group is currently under investigation. 
After the capital injection, the deposit and the borrowing ceilings imposed on the finance firm by the Central Bank is reported to have been removed. 
As at March 31, 2017 Entrust Holdings held 29.9 percent stake in Multi Finance. Fairway Holdings holds 64.7 percent stake in the company post-mandatory offer. 
Multi Finance experienced a run on its deposits as the company’s deposit base eroded 32 percent year-on-year to Rs.368 million as at March 31, 2017.
Multi Finance’s book value per share is Rs.13.1. The company has 63.6 million shares in issue. 
For the quarter ended March 31, 2017, the company reported a loss per share of 70 cents, narrowing from a loss per share of Rs.1.88 during the corresponding quarter of the previous year.  

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




“I don’t think Sri Lankans can be realistically ruled by force” -Ahimsa Wickrematunge

Twelve years after the assassination of Lasantha Wickrematunge, the founding

Decisions to be made in Sri Lanka’s hunt for the COVID-19 Vaccine

Around the world, governments are gearing up to roll out nationwide immunizat

“I am the Godfather of Russian tourists” - Udayanga Weeratunga

Former Sri Lankan Ambassador to Russia Udayanga Weeratunga is back in the sce

Sri Lankan migrant workers still in limbo

Sri Lanka’s migrant workers are a significant part of our economy, with the

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.