IFC wants more time in Sampath audit enquiry

The International Finance Corporation (IFC) has informed that it will require further time to finalise its decision to participate in the enquiry of the Sampath Bank audit issue.

Therefore, it will not participate in the Private Placement or Rights Issue within the time frames announced earlier, sources said. However the IFC will continue to have close relations with the bank and provide technical know how to the bank.

If the Rights Issue fully taken the maximum number of shares allowed for Shore Cap will be 4,192,307 at an exchange rate of US$ 1 - Rs. 109). The Board of Directors of the Bank has also recommended that in the event of under subscription for the Righs Issue shares if and above under subscription be met by the issue of shares to IFC and Shore Cap in the ratio of 75% to 25% out of their respective obligation referred to in 2(a) and 2(b) above.

The IFC investment is also subject to the condition that; the Bank obtain regulatory approval for their share holding in excess of 10% of the issued ordinary share capital of the Bank and the IFCs total share holding in the Bank inclusive of any share purchases, which it may make on the market between on and the sue of shares to them by the Bank shall not exceed 14.5% of the issued ordinary share capital of the Bank.

At the Board Meeting held on September 9, the Board decided to proceed with the Rights Issue and Private Placement on the original prices and terms and conditions. Accordingly, CSE approval was obtained for the Rights Issue and Private Placement. The Bank has now been informed by Shorecap International that they will not be participating.

(HS)