Thursday, November 25, 2010

Sri Lanka: Lankem Ceylon to acquire Nation Lanka Finance

By J.A. Fernando in Colombo

Colombo, 25 November, ( Post war bullish rising conglomerate Lankem Ceylon PLC has recently shown its interest to buy Nation Lanka Finance (NLF) PLC for Rs.550 million, Asian Tribune Learns.

According to a source from Colombo Stock Exchange considering the current financial situation due to constraints on capital of Nation Lanka Finance PLC (Stock Quote: CSF); Lankem Ceylon PLC has agreed to buy 110 million shares of Nation Lanka at a Rs.5 per share as a private placement by sending a letter to NLF Chairman N.B.S.B. Balalle.

Earlier on last week, a high profile market source revealed that a consortium of investors including one Chief Operating Officer from a post war bullish leading hospital chain, and Chairman of a construction company which is a part of Sri Lanka’s No.1 hospital, another individual who promoted gold quest fund in Sri Lanka with a stock brokering firm background were eyeing to buy Nation Lanka Finance PLC shares via a private placement at Rs.5 per share.

When contacted by Asian Tribune on the deal Asanga Seneviratne earlier on last week said “I am not fussed, we are looking at a long term investment. Even if it is offered at one rupee or five rupees we are going to buy it. The company’s net asset value is at negative Rs.200 million with undisclosed liabilities, so they need investors.” Adding when he is interested everyone is concerned.

“However, the offer is yet to be accepted under comprehensive financial and legal due diligence by Nation Lanka PLC, along with necessary stock exchange approval” sources added.

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