Colombo Trust Finance to raise Rs.600mn to beef up capital

Colombo Trust Finance PLC yesterday announced plans to raise Rs.600 million via a rights issue subject to the approval of the Colombo Stock Exchange and shareholders. 

The company said it would issue 25.7 million new ordinary voting shares in the proportion of 309 new shares for every 599 shares held at a price of Rs.23.30 per share. The company’s current stated capital is Rs.309.9 million.

The money raised through the rights is to be utilized to beef up the core capital of the firm in compliance with the Central Bank requirements. 

In September last year, Dialog Axiata PLC acquired 80 percent of Colombo Trust Finance from Cargills Bank paying Rs.28.70 per share.

With the mandatory offer that followed, Dialog Axiata as at December 31, 2017, held 98.87 percent of the issued shares of Colombo Trust Finance.