Multi Finance gets shareholder consent to list in CSE

Shareholders of Multi Finance PLC (MFL) at an Extraordinary General Meeting (EGM) held on last Friday approved a special resolution, to convert the debt of its holding company into ordinary voting shares.

The company which got listed in May 2011 on the Diri Savi Board by way of an Introduction has been an active trading counter amongst the retail investors in the recent past.

With the conversion of debt of the holding company into equity, the Net Asset Value will enhance by Rs 156,999,990 in addition to saving of interest cost and thereby increasing the overall profitability and earnings.

As decided by the Board of Directors and as approved at the EGM, Multi Finance PLC would be converting the debt at a price of Rs 35 per share.

These Ordinary Voting shares would be issued and listed in the Colombo Stock Exchange by way of a Private Placement on September 12, 2011 and will rank pari-passu to the existing shares of the company.

After this conversion the public holding of the company would be 15.44 percent and the company is presently on an aggressive plan to revolutionize the finance sector.

The company officials feel that there is ample opportunity in rural markets and is in the process of expanding its micro financing business. The strength and stability of the company is appositely reflected in the company’s share price and its resilience during volatile market conditions.

The company headquartered in Kandy, has offices in Colombo, Gampaha, Kurunegala and Matara and has obtained Central Bank approval for disbursing funds for leasing, hire purchase, pawning, mortgage and other loans and for accepting savings and fixed deposits from the public.