Softlogic Finance PLC will be converting some of its debt into equity by issuing new shares worth Rs.288.09 million through a private placement to Dutch development bank FMO.
Of a US$ 4 million loan FMO has extended to Softlogic Finance, US$ 2 million will be converted into 8.24 million shares, which is 13.95 percent of the shareholding in Softlogic Finance.
The conversion is done based on the book value of shares as at March 2014, with Rs.34.96 per share. Shares were trading at Rs.46.90 yesterday, up Rs.1.10 from Wednesday.
Approval from both the Colombo Stock Exchange and the shareholders has already been obtained for the conversion into shares.
Following the deal, the public float in Softlogic Finance will fall from 34.66 percent to 29.83 percent.
FMO has been intimate with Ashok Pathirage’s Softlogic group for some time, purchasing a significant share of Softlogic’s insurance arm Asian Alliance in 2013, and providing a US$ 10 million loan facility to Softlogic Finance in 2012.
There has been some foreign interest in the Softlogic group recently, with leading global investment firm TPG buying 28 percent of the shares in Asiri Hospital Holdings PLC. (CW)