Market sources say the bank is eyeing stake in insurance company
By Jithendra Antonio
One of the leading commercial banks in the country Hatton National Bank (HNB) recently informed the Colombo Stock Exchange that the company is yet to issue a total 59.58 million voting and non-voting new shares to existing stakeholders, in a bid to raise Rs.11.91 billion.
The bank said they are raising money to strengthen the capital and balance sheet figures to support overall business growth.
According to the statement, the company will issue 1 right at Rs.219.50 to every 6 voting shares each and 1 non-voting right at Rs.119.50 for every 6 non-voting shares amounting to a total of 47.9 million voting rights and 11.6 million non-voting rights. Subsequently another 13.5 million voting
shares will be issued by way of a private placement (less than Rs.235 per share) to institutional investors (both foreign and local) who are to be identified by the managers to the issue in relation to the highest price offer. The notice highlighted that investors who apply to private placement will not be entitled to rights.
It is widely speculated by market sources that HNB is raising this money to acquire a stake in a leading insurance company operating in the country.
HNB’s total stated capital as to date is Rs.5.362 billion represented by 286.9 million voting shares and 70.05 million non-voting shares, following a recent subdivision.
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