People’s Merchant Finance to hold EGM on sale of assets

People’s Merchant Finance PLC (PMF), a subsidiary of state-owned People’s Bank, will be holding an extraordinary general meeting next month to decide on divesting one of its major assets, and streamlining activities, in order to prevent further losses.
PMF said that it will be selling a 108-perch property situated off of Nawam Mawatha—its registered office and place of business—which represents 28.9 percent of the total assets of the company, subject to obtaining all relevant approvals.

The company’s total asset base was Rs. 3.67 billion during the period for which the evaluation was made.
“This sale is envisaged to help decrease the cost structure of the company and strengthen the liquidity position, while meeting the regulatory requirements relating to core capital, which the company is not in compliance with at present,” PMF said.
PMF is hoping to intensify its main business, streamline operational procedures, review cost structures and strengthen work force in required departments as further measures of preventing losses.
The company’s accumulated losses as at December 31, 2016 was Rs. 1.18 billion, compared to Rs. 1.10 billion at the start of the financial year, while the asset base fell to Rs. 3.52 billion from Rs. 3.60 billion in the same period.
Following a directive of the Central Bank, People’s Bank subsidiary People’s Leasing & Finance PLC took over as the managing agent of PMF, coinciding with the exit of a consortium of shareholders that controlled the company.