what about csf right issue.....

Nation Lanka Finance PLC (CSF) is slowly but surely getting out of trouble and likely to be a major financial powerhouse thanks to the timely interference of the Central Bank and proposed infusion of new funds by the existing shareholders.

CSF unlike other finance companies have diverse interest in the financial sector of the country with deep routed branch network, large land bank, flagship stock brokering company Ceylinco Stock Brokers and number of other property and financial services sector subsidiaries.

Proposed Rights Issue & Placement.

As per the Announcement dated 16th December 2010 issued by CSF, it is proposing to issue additional shares on the following basis.

a) To issue of 59,958,150 shares by way rights to the existing shareholders at a price of Rs 5/= per share. Existing issued capital of the company is 39,972,110 shares.

b) To issue 100,000,000 shares by way of a placement to a consortium of investor at a price of Rs 5/= per share.

Above rights issue and placement is however is subject to the approval of the shareholders (exceeding 75% available to votes) at the Extra Ordinary General meeting to be held on the 9th March 2011, 10.00am at Sasakawa Hall, 4, 22nd Lane Colombo 3.

Implications of the Rights issue and the Placement

As a result of the proposed rights issue the ownership of CSF would be taken over by consortium of new investors immediately upon the approval of the private placement by the shareholders. This is as a result of exiting shareholders ownership after the right issue being limited to 99,930,260 shares as against the 100,000,000 shares issued to the consortium. The private placement will effectively enable the consortium the majority ownership in excess of 50%.

Offers made to CSF

During last 3 months there have been many investors who had looked at investing in Nation Lanka Finance PLC (CSF) but the serious offers only came from the current consortium of small investors led by Asanga Seneviratne and other from the well-known business conglomerate Lankem Ceylon PLC. Although the offer of Rs 550mn made by Lankem Ceylon PLC exceeded the value of the other offers, it has not been considered due to unknown reasons.

The Asian Finance Limited one of the subsidiaries of CSF was taken over by the Malaysian investor Tiong King Sing in November 2010

How much CSF worth?

Although the CSF’s Net Asset Value (NAV) and Earnings Per Share (EPS) shows a negative figure many believe that company has potential for a quick turnaround in to profitability. This is in consideration of the current rejuvenation of the economy which has resulted in low cost of funds, appreciation of the real estate assets and the direct and indirect benefits the CSF Group could derive from the stock market activities carried out by its flagship stock brokering subsidiary Ceylinco Stock Brokers (pvt) Limited.

Accordingly many believe that the sale of the controlling interest at Rs 5/= per share (or Rs 500mn) is far below the real value of the company. This is clearly manifested by the current market price which is in excess of Rs 20/= per share both prior to and after the announcement.

Best Opportunity for the Existing Shareholders

The Extra Ordinary General meeting to be held on 9th March 2011 presents a Golden Opportunity to the existing shareholders to enhance the value of their shareholdings.

This opportunity could be derived only if the shareholders are capable of preventing the ownership of the CSF being given over to a new investor in a silver platter for a mere Rs 500mn. Shareholders vote at the Extra Ordinary General meeting of the company would be very crucial.

The decision of the exiting shareholders to Approve the Rights Issue and Reject the Placement will enable the exiting shareholders to enhance the value of its rights whilst it will enable the company to raise Rs 300mn, which would adequately help the company to turn its business around.

Vote wisely!!

If outside investors are allowed to buy shares at 5 , that's a golden opportunity for them, not for existing share holders.

does it mean, right issue profit for the general invetors will be very attarcative????

Avinash wrote:

Best Opportunity for the Existing Shareholders

The Extra Ordinary General meeting to be held on 9th March 2011 presents a Golden Opportunity to the existing shareholders to enhance the value of their shareholdings.

This opportunity could be derived only if the shareholders are capable of preventing the ownership of the CSF being given over to a new investor in a silver platter for a mere Rs 500mn. Shareholders vote at the Extra Ordinary General meeting of the company would be very crucial.

The decision of the exiting shareholders to Approve the Rights Issue and Reject the Placement will enable the exiting shareholders to enhance the value of its rights whilst it will enable the company to raise Rs 300mn, which would adequately help the company to turn its business around.

Shareholders have to vote wisely at the EGM otherwise they will be the ultimate losers. 25% of the shareholders can vote down the Private Placement. Rights Issue will benefit the existing shareholders and the company but the Private placement will benefit only few people. Names of the key shareholders are shown below.

Check & compare results of these two companies for the last one year from CSE site.

I have a confident that CSF will report a marginal profit for the Dec Q 10 as per their past growth. As at 30/09/2010 CSF EPS was Rs (3.40) as against (Rs 40.18)reported same period in last year.Their Sep results shows a good bottom line recovery.

However in the case of TFC loss as at 31/12/2010 was Rs 1.6 b.n & EPS was Rs (78.78).Their NAV was (Rs 221.63)as at 31/12/2010/ Just check with CSE site. But the share is trading above Rs 40 levels & the CSF share is trading at Rs 20 levels + pending attractive rights issue of 3 for 2 @ Rs 5.00. If you take 2000 shares @ Rs 21.50 levels your cost after subscribing to rights will be around Rs 11.60. But my opinion is that this share will not come below Rs 15 levels after the rights issue since the rights issue cash & the new cash infusion will help to overcome present constraints of the company.

This is the cheapest financial company in the country today in terms of Rupee value & any body who is interested to run this company still has the chance of grabbing it.

Just think which share is more value. Is it TFC or CSF. Which share is under value at present. Is it CSF or TFC. Which share is over valued by now. Is it TFC or CSF?

Thanks.

Avinash wrote:Nation Lanka Finance PLC (CSF) is slowly but surely getting out of trouble and likely to be a major financial powerhouse thanks to the timely interference of the Central Bank and proposed infusion of new funds by the existing shareholders and consortium of investors.

The above and the following statements contradicts each other

Avinash wrote:Best Opportunity for the Existing Shareholders
The Extra Ordinary General meeting to be held on 9th March 2011 presents a Golden Opportunity to the existing shareholders to enhance the value of their shareholdings.

This opportunity could be derived only if the shareholders are capable of preventing the ownership of the CSF being given over to a new investor in a silver platter for a mere Rs 500mn. Shareholders vote at the Extra Ordinary General meeting of the company would be very crucial.

The decision of the exiting shareholders to Approve the Rights Issue and Reject the Placement will enable the exiting shareholders to enhance the value of its rights whilst it will enable the company to raise Rs 300mn, which would adequately help the company to turn its business around.

Vote wisely!!

@Avinash, there was a rights issue in Nov 2009 (1:1 @ 12/=) and this company raised 239,832,600 Mn. What happened to this money? Why the Management failed to turn around the company from the proceeds of the above rights issue??

This company is not even honoring the FDs and the poor people who depositted their hard earned money are in disarray.

Do you still believe that the current management is capable of turning around this company??

No doubt ...the present Management should be kicked-out, specially the Board member/s who also sat on the Famous Scam Ridden Golden Key Board...!

I am interested to learn more about the Mr. W P A S Perera who is in the top 2o, he is also a prominent shareholder of GREG.

By J.A. Fernando in Colombo
Colombo, 16 February, (Asiantribune.com):
According to sources from Colombo Stock Exchange, The Extra Ordinary General meeting of Nation Lanka Finance PLC to be held on 9th March 2011 presents a ‘Golden Opportunity’ to the existing shareholders of the company to enhance the value of their shareholdings.

“This opportunity could be derived only if the shareholders are capable of preventing the ownership of the CSF being given over to a new investor in a silver platter for a mere Rs 500 million.” said a high profile market source and a concerned investor on the grounds of anonymity to the Asian Tribune adding that shareholders vote at the Extra Ordinary General meeting of the company would be very crucial.

According to him the decision of the existing shareholders to ‘Approve the Rights Issue and Reject the Placement,’ will enable the existing shareholders of Nation Lanka Finance PLC (CSF) to enhance the value of its rights whilst it will enable the company to raise Rs.300 million, which would adequately help the company to turn its business around.

Industry sources say that Nation Lanka Finance PLC (CSF) is yet to recover out of its earlier financial difficulties and likely to be a major financial powerhouse due to timely interference of the Central Bank of Sri Lanka and proposed infusion of new capital by the existing shareholders and consortium of investors.

As per the earlier announcement dated 16th December 2010 issued by CSF, it is proposing to issue additional shares on the basis of 59,958,150 shares by way rights to the existing shareholders at a price of Rs.5 per share where as the existing issued capital of the company is 39,972,110 shares. There after it will also issue 100 million shares by way of a placement to a consortium of investors at a price of Rs.5 per share to get another Rs.500 million as fresh capital to the company.

This rights issue and placement is however is subject to the approval of the shareholders the Extra Ordinary General meeting to be held on the 9th March 2011.

Accordingly, as a result of the proposed rights issue the ownership of CSF would be taken over by consortium of new investors immediately upon the approval of the private placement by the shareholders. This in turn will result in existing shareholders ownership after the right issue being limited to 99,930,260 shares as against the 100,000,000 shares issued to the consortium. The private placement will effectively enable the consortium the majority ownership in excess of 50% according to industry analysts.

As Asian Tribune earlier reported back in November 2010,(http://www.asiantribune.com/news/2010/11/25/sri-lanka-lankem-ceylon-acqu...) there have been many investors who had looked at investing in Nation Lanka Finance PLC (CSF) but the serious offers only came from the current consortium of small investors led by Asanga Seneviratne’s Investor Access Equities (Private) Ltd., Nawaloka Construction Company (Private) Ltd., Jayaprakash Rudra and another from the well-known business conglomerate Lankem Ceylon PLC (LCEY). Although the offer of Rs.550 million made by Lankem Ceylon PLC exceeded the value of the other offers, it has not yet been considered due to unknown reasons.

Analysts forecast that although the CSF’s Net Asset Value (NAV) and Earnings Per Share (EPS) shows a negative figure many believe that company has potential for a quick turnaround in to profitability. This is in consideration of the current rejuvenation of the economy which has resulted in low cost of funds, appreciation of the real estate assets and the direct and indirect benefits the CSF Group could derive from the stock market activities carried out by its flagship stock brokering subsidiary Ceylinco Stock Brokers (Pvt) Limited.

Accordingly many believe that the sale of the controlling interest at Rs.5 per share (or Rs 500 million) is far below the real value of the company. This is clearly manifested by the current market price which is in excess of Rs.20 per share both prior to and after the announcement.

Nation Lanka is a company which has diverse interest in the financial sector of the country with deep routed branch network, large land bank, flagship stock brokering company Ceylinco Stock Brokers and number of other property and financial services sector subsidiaries.

- Asian Tribune -


Link: http://asiantribune.com/news/2011/02/15/sri-lanka-nation-lanka-finance-offer-best-opportunity-existing-shareholders-rights-i

Despite the hype on fresh capital infusion amounting to Rs.500 million to Nation Lanka Finance (CSF) by a consortium of investors led by Asanga Seneviratne’s Investor Access Equities (Private) Ltd., Nawaloka Construction Company (Private) Ltd. and Jayaprakash Rudra, the majority of shareholders of the company have now expressed their concern over the proposed private placement, according to market sources.

“I think this is an unfair game, they are giving a share valued at Rs.5 for private investors in a silver platter. It will help those few investors to make money at the expense of minor shareholder as the market price of the share is already above Rs.20,” said one minor shareholder of Nation Lanka, Migara Samarasinghe.
According to another shareholder Shenal Deemantha, the proposed rights issue of the company for existing shareholders will offer a ‘golden opportunity’ to enhance the value of their shareholding.

“It is ideal for the existing shareholders to ‘reject the private placement and approve the rights issue’ because it will help the majority public shareholder from big players who will benefit through selling their shares at the market price leading the company to go for another rights issue or a private placement after some time due to working capital issues,” said Deemantha.
When we tried to contact Chairman of Nation Lanka Finance Plc, N.B.S.B. Balalle, we learned from a company’s official that as the company is being shifted to new premises at Guildford Crescent, the telephone lines of the company are temporarily out of service. On the contrary, a source close to the company told The Bottom Line that the new office premises have been subleased to Nation Lanka by a member of the consortium of new investors after keeping a markup of over Rs.100,000.

“Nation Lanka is paying Rs.250,000 as rent whereas this premises were originally leased for Rs.85,000 to a third party who subleased this to Nation Lanka,” our source told The Bottom Line stressing that this is a real indication of the financial plans of the new consortium of investors who are infusing Rs.500 million to the company.
Thus, the majority of minor shareholders are of the opinion that the rights issue will enable the company to turnaround the business through raising Rs.300 million as the company already has a major public holding

However, sources say that Nation Lanka Finance Plc (CSF) is yet to recover out of its earlier financial difficulties and is likely to be a major financial powerhouse due to timely interference of the Central Bank of Sri Lanka and proposed infusion of new capital by the existing shareholders and consortium of investors.

The company is slated to hold its
Extra Ordinary General Meeting (EGM) to get the approval of rights issue and private placement from the majority public shareholders on March 9, 2011.
According to an announcement dated December 16, 2010 issued by Nation Lanka to the Colombo Stock Exchange, the company is proposing to issue additional shares on the basis of 59.9 million shares to the existing shareholders at a price of Rs.5 per share although the existing issued capital of the company is around 40 million shares. There after it will also issue 100 million shares by way of a placement to a consortium of investors at a price of Rs.5 per share to attract another Rs.500 million as fresh capital to the company.
The private placement will effectively enable the consortium of investors the majority ownership in excess of 50%, according to industry analysts.
In the meantime, another offer made by conglomerate Lankem Ceylon PLC (LCEY) for Rs.550 million to buy a controlling stake of Nation Lanka has not yet been considered due to unknown reasons, according to sources.
Analysts forecast that although the CSF’s Net Asset Value (NAV) and Earnings Per Share (EPS) show a negative figure, many believe that the company has the potential for a quick turnaround in to profitability. This is in consideration of the current rejuvenation of the economy which has resulted in low-cost of funds, appreciation of the real estate assets and the direct and indirect benefits the CSF Group could derive from the stock market activities carried out by its flagship stock brokering subsidiary, Ceylinco Stock Brokers (Pvt) Limited.

By Jithendra Antonio
http://www.thebottomline.lk/2011/02/20/page12.html

I would like to Raise some important Questionss on CSF (Nation Lanka Finance)

Some PPL are trying to Discriminate the Private placement on some undisclosed grounds..what so ever they say over the private placement is not followed with any valid clarifications on the Past, Present & the Future of the CSF.

01. Will the present management be able to guide the company for profitability in
coming years?
If yes....then
a) why did they failed in recent past..?

b) What happened to Capital infusion by way of right issue on 2009

c) Did the present Management was able to turn-around the CSF
by utilizing the said 240mn Right issue money...if yes then why
another Right issue.. or why still at a huge loss???

02. Do any stake holder think, without a management change, just infusing capital
through rights will benefit their investment

03. Do any of those PPL who oppose the private Placement have mentioned the
amount still liable to its Depositors...? and how they plan to settle those
depositors...? (thank GOD the Depositor has not gone to courts as F&G or
Golden Key, If such a thing occurs then what would be the Mkt Price of the CSF
share...?)

04. Do you know that the staff was not issued with their annual salary increments for the past 3 years (since 2008 no salary increments or Incentives/Bonuses)
The stake holders should know that the staffers are waiting for a salary
increment and if the private placement failed and their hope of a better
management with a clear future failed & if the staff go for a strike then the present market price will fall to bottom hell withing hours...!

05. Why only CSF will not be benefit if a private placement was made on lesser value than the market Price...?
Pls see how ... DPL private placemen was made and....Then & Present market prices, Pvt Placement Issued Prices..etc..

I, as a stake hold take all above facts for consideration before voting and for sure I'll VOTE with the Private Placement knowing the true picture of the present state of the company...!

Others pls do your own researches, observations & fact finding missions and decide your VOTE for the future of your valuable investment...Cheers...!

Following has been copy from web site.http://www.lankanewsweb.com/news/EN_2011_02_24_008.html
made you judgment
I don’t know how far is it correct?

Well known businessman Mr,XXXXXXXXXe and a member of the XXXXXXa Group are looking at purchasing Nation Lanka Finance PLC, which is listed in the stock market, at a very low rate and that such a scenario would result in a fall in the stock market, a senior official from the Central Bank told Lanka News Web.

Nation Lanka Finance is a subsidiary of the Ceylinco Group and Millennium City, Ceylinco Stock Brokers and Ceylinco Money Brokers operate under the company.
Mr.AXXXXX SXXXXXXXXXXX has struck a close friendship with Mr,XXXeX XXXXXo, who is one of the heads at Nation Lanka Finance and has worked to call an annual general meeting of the company in order to take it over. However, Nation Lanka Finance’s Finance Director XXXX and MrXXX XXXXXX have objected to the planned take over.

Directors of Nation Lanka Finance, MrXXXX XXXXXXXa and MrXXXe have also agreed to support MrXXXXXo in the attempt to sell the company to MrXXXXXXe.

MrXXXo has also taken steps to relocate Nation Lanka Finance that was located at the Iceland Building to Guilford Crescent near Royal College due to requests made by MrXXXXXXe.

The building and land at no. 42, Guilford Crescent where the company is now located is owned by a lady known as XXXXX

The house had been taken out on a monthly rent of Rs. 80,000 by MrXXXXXXe after informing the owner that he wanted to occupy the place as his residence.

The building that has been taken on a rent of Rs. 80,000 per month by MrXXXXXXe has been rented out by him to Nation Lanka Finance at Rs. 250,000.

The owner of the building, XXXXX, had arrived at the premises on the opening day of Nation Lanka Finance and had reprimanded the people there saying she was not informed that the building was being rented out by a company.

XXXX had asked the heads of the company not to even put up a name board of the company in the premises.

@ Java

The Biggest JOKE.... is this Central Bank person talking about market fall..? is he a much bigger & knowledgeable man than the NON BANKING SUPERVISION UNIT of the Central Bank...?
-Without the The permission of Centrel Bank NBSU CSF can't announce a Rights & private placement Issue coz CSF is under supervision of CBSL


any company should obtain approval from SEC & CSE well to call for a Private Placement & Right Issue - so get to know CSF by now have announce the date of Rights Issue + Date of EMG it meane both SEC & CSE have Granted approval for the issue and DO ANY ONE THINK THESE AUTHORITIES just grant approval with out a stuff checking matters related to the issue..?
so this Guy should be some one bigger than Hon Ajith Cabrral of CBSL, Mrs Indrani Sugathadasa of SEC and Mr. Malik Cadder of CSE...WOW who the hell is this guy...is he the FINANCE MINISTER of SL...heeeeeeeeeeeeeeee???

Next... Do any one think NAWALOKA Group will invest in CSF if they don't know how & what to do ...?

Next.... The Above article lacks credibility... Presently CSF do not hold Ceylinco Money Brokers ..it was sold out to NAVARA CAPITAL in 2010

Some Directors are talking of scandals on CSF shifting to a new location, but have they ever actively involved finding a better place @ a low cost then pls let us know where,When & at what cost..?

So my dear is this Finance Director going to pay Depositor Money..and save CSF ? or do he and the other Directors who oppose the take over bid will pay Depositors money...?

bloody Shit, those who oppose the Private placement, has they done anything to pay Depositors money or at least to improve the balance sheet of the company...? also how can these same clan manage the company, while they have failed to over come the bad period since 2008...? Is this Finance Director a new born baby...?

No matter what ever these Idiots Talk ..we as share holders have to look forward with the new investors coz if a quick capital infusion & removal of the present management is not met up immediately, then the CSF will end up in a scenario like F&G coz as I heard many Depositors are waiting to resort to Leagal Action and to seek court intervention to recover their Deposit money.

The Best option for the existing Share Holders is to VOTE for the Private placement and go forward with a new management...which will ensure share holders investment value in the future...


Just See how DPL.N0000 (Dankotuwa Porcelain PLC) Bounced back with a Private placement & a team of new Management...see the Market price of DPL now....! just check DPL then price,... PVT Placement price.....& Now Price...!

Nation Lanka Finance Company (NLF)’s private placement action aimed at infusing capital worth Rs.500 million through a consortium of investors is now hanging in the balance owing to undue interference of a former director of the collapsed Golden Key Credit Card Company (GKCC), NLF sources said.

Bandula Ranawera, one of the accused in the Golden Key fraud case and a former director of collapsed Golden Key Company, continues to serve as the Managing Director of NLF despite the Supreme Court order that no GKCC director can work as a director of any public deposit taking company or institution, and is opposing the rescue plan of private placement for which Central Bank of Sri Lanka, Colombo Stock Exchange and Securities Exchange Commission of Sri Lanka have given their approval, sources revealed. Mr Ranaweera along with some other directors were planning to defeat the resolution seeking approval of the private placement at the company’s Extraordinary General Meeting (EGM) to be held next week, the sources said.

NLF has mobilized over Rs. 2 billion public deposits and now has a negative net worth value of Rs. 380 million. It has declared a serious loss of capital in July 2010 and now find difficulties to pay public deposit holders. As a remedial action the company approached several prospective investors including LOLC and Union Bank for a capital infusion, but proposals were turned down eventually. Finally a consortium of investors led by Investor Access Equities (Pvt) Ltd came to the rescue of the company by infusing capital worth Rs. 500 million through a private placement.

Directors including Mr Ranaweera and Finance Director Chandra Gamage had signed an agreement with the consortium of investors on 14th December 2010 giving their consent. Now they are opposing the move without any valid reason, employees of the company allege.

Meanwhile it has been revealed that in the GK case, Mr Ranaweera’s asset declaration given to the Attorney General and Supreme Court was also bogus misleading the judiciary and the depositors. According to his asset declaration, he has also failed to declare that he has 1.7 million shares of Nation Lanka Finance which is now worth Rs. 40 million and convertible to cash immediately and could be paid to GK depositors immediately.

He has not declared his estate of 50 acres owned in Katukenda estate, Badalgama now worth Rs.400 million. His property at No 133/20 at Nawala Road, Narahenpita now worth over Rs. 50 million in the asset schedule given to the Supreme Court and there are 13 items which belong to him and his family members which is valued over Rs. 300 million showing as “not known” and another six items as “not given”. These remarks “not known and not given” by him is to mislead the courts and avoid declaration of assets, NLF employees said. Mr Ranaweera was not available for comment.

ruwa925 wrote:Nation Lanka Finance Company (NLF)’s private placement action aimed at infusing capital worth Rs.500 million through a consortium of investors is now hanging in the balance owing to undue interference of a former director of the collapsed Golden Key Credit Card Company (GKCC), NLF sources said.

Bandula Ranawera, one of the accused in the Golden Key fraud case and a former director of collapsed Golden Key Company, continues to serve as the Managing Director of NLF despite the Supreme Court order that no GKCC director can work as a director of any public deposit taking company or institution, and is opposing the rescue plan of private placement for which Central Bank of Sri Lanka, Colombo Stock Exchange and Securities Exchange Commission of Sri Lanka have given their approval, sources revealed. Mr Ranaweera along with some other directors were planning to defeat the resolution seeking approval of the private placement at the company’s Extraordinary General Meeting (EGM) to be held next week, the sources said.

NLF has mobilized over Rs. 2 billion public deposits and now has a negative net worth value of Rs. 380 million. It has declared a serious loss of capital in July 2010 and now find difficulties to pay public deposit holders. As a remedial action the company approached several prospective investors including LOLC and Union Bank for a capital infusion, but proposals were turned down eventually. Finally a consortium of investors led by Investor Access Equities (Pvt) Ltd came to the rescue of the company by infusing capital worth Rs. 500 million through a private placement.

Directors including Mr Ranaweera and Finance Director Chandra Gamage had signed an agreement with the consortium of investors on 14th December 2010 giving their consent. Now they are opposing the move without any valid reason, employees of the company allege.

Meanwhile it has been revealed that in the GK case, Mr Ranaweera’s asset declaration given to the Attorney General and Supreme Court was also bogus misleading the judiciary and the depositors. According to his asset declaration, he has also failed to declare that he has 1.7 million shares of Nation Lanka Finance which is now worth Rs. 40 million and convertible to cash immediately and could be paid to GK depositors immediately.

He has not declared his estate of 50 acres owned in Katukenda estate, Badalgama now worth Rs.400 million. His property at No 133/20 at Nawala Road, Narahenpita now worth over Rs. 50 million in the asset schedule given to the Supreme Court and there are 13 items which belong to him and his family members which is valued over Rs. 300 million showing as “not known” and another six items as “not given”. These remarks “not known and not given” by him is to mislead the courts and avoid declaration of assets, NLF employees said. Mr Ranaweera was not available for comment.

Source: the sunday times.
Typical Sri Lankan one sided reporting at it's worst

XR date is on coming week.

Price now- 22 to 24
Right price- 5

there is a significant price gap between present price and right price. as many expected price did not come down. if this price level prevail until right trading date definitly right trading will be very attractive......
what do you guys think??