Singer Finance (Lanka) PLC has summoned an extraordinary general meeting on June 29 immediately after the conclusion of the company’s annual general meeting to consider a resolution for the floating of a rights issue of 58.66 million new ordinary shares priced at Rs.11 per share.
Shareholders have been told that the funds raised from the rights issue will be used to expand the company’s branch network comprising nine branches and eight "window service centers" by adding two new branches and nine window service centers during the current financial year.
It is intended to spend Rs. 50 million on branch expansion and Rs. 595.3 million of the rights issue cash on expanding the company’s leasing business, a circular to shareholders said.
The Singer Finance share closed at Rs. 11.30 on May 31, with shareholders having a slight advantage with the 11-upee issue price.
Four locations have been earmarked for expansion in order to utilize new business opportunities following the rights issue which, though not underwritten, is backed by Singer Sri Lanka which owns 75% of Singer Finance.
The number of shares in issue will rise to 165.33 million post-rights and the stated capital to Rs.1.45 billion from Rs.800 million at present.
The parent will take any remaining unsubscribed rights issue after satisfying applications for additionals from the 25% minority component, the circular said.