Speaking during an interview with Mirror Business, TFC Chair man Preethi Jayawardena and TFC Director/chief Executive Officer Kamal Yatawara reiterated that the transaction in question was strictly a private one between the owners of the shares and NSB, thereby having no material impact on TFC or its depositors.
Jayawardena added that the two directors in TFC who had sold their shares to NSB, Dinal Wijemanne and Rayynor Silva, had since resigned their posts in the company. However, no disclosure has been made by Silva to the Colombo Stock Exchange regarding either his resignation or the sale of shares at the time of printing.
Wijemanne meanwhile resigned from his post as Director, effective from May 2; however, he was thereafter appointed as an Alternate Director to Independent Non-executive Director, TFC, Nirmala Anura Fernando, also with effect from May 2, according to a disclosure from the company to the CSE.
“The company is in safe hands and on a sound footing and there is no danger whatsoever. For us, the company and our depositors come first and because our depositors are involved, we are always mindful of that and so we take no undue risks. Even if the transaction was completed without any issues, we would not have seen any direct benefit from the transaction itself,” Jayawardena said.
Nevertheless, both Yatawara and Jaywardena maintained that a partnership with NSB would have been mutually beneficial due to the potential synergies between the two organisations.
“A partnership with NSB would have brought more stability to the company through better access to funding and the value of NSB'S brand and we were in discussions with NSB and two other foreign parties prior to the sale, with the aim of forming a strategic partnership and these negotiations are still underway,” Yatawara said.
“If NSB had been our strategic partner, it would have been a window of opportunity for them to use our 63-branch network to get into the hire purchase and leasing and real estate business. They would have had the funding and we would have had the muscle, so it would have been a great synergy,”