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| Thursday, 06 January 2005 |
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MBSL completes Capital Restructure, poised for growth The Merchant Bank of Sri Lanka Limited (MBSL) announced the completion of its capital reduction exercise and the recommencement of the trading of its shares today. MBSL Managing Director Sunil Wijesinha said "We have been working on this for the past three years as the Phase III of our restructuring exercise. We are all delighted that with the completion of this final phase, MBSL's restructure is finally complete". MBSL officials were also elated that after several years MBSL shares have come back to the bluechip (Milanka) index. "The last stage of restructuring was the capital reduction of ordinary and preference shares and the conversion of preference shares to ordinary shares. "This is a win-win situation for all our stakeholders. Ordinary shareholders now have the same claim on the profits of the company which would not have been the case if the preference shares remained. Debenture holders would also be on a stronger footing with MBSL's stronger balance sheet. As a result of the capital reduction, accumulated losses in the Balance Sheet will be totally eliminated. This would in fact facilitate borrowing at competitive rates", Wijesinha said. He said that "the leasing and hire purchase portfolio of MBSL has been growing strongly and reached a milestone of Rs. 1 billion disbursements for 2004. Prospects are strong for a significant growth in 2005 as well. Last year MBSL's capital market department made a strong recovery by handling the Nawaloka IPO and other mandatory offers. The department has been strengthened with new competencies to handle a higher level of business in 2005". |
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