Monday, May 14, 2012

Deal reversal awaits SEC instructions

The main broker Taprobane Securities Ltd. is awaiting instructions from the Securities and Exchange Commission (SEC) with regard to reversal of contentious NSB-TFC deal.

 Daily FT learns the broking firm has informed the SEC of the intimation from the buying party of its unwillingness to pay as well as agreement by sellers to buy back.

Apart from being buying broker for NSB, Taprobane also represented 10 sellers as well in that transaction which involved the savings giant buying 7.86 million TFC shares for Rs. 390 million.

 Separately last week there was a meeting between NSB Chairman Prasad Kariyawasam and SEC Chairman Tilak Karunaratne as well though it was prior to saving giant making public its u-turn.

 On its own SEC is also investigation in to the transaction whilst the CSE has suspended the custodial role of NSB for its failure to reject the buy as well as for non-payment.

source -

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