TFC floats fresh EOIs seeking Rs. 25 b

• Says Board of Directors decided on 31 Dec. in CSE disclosure
• Local and foreign investors encouraged to apply
• Applications close in two weeks

The Finance Company (TFC) yesterday said Expressions of Interest (EOI) has been called for a minimum equity investment of Rs. 25 billion with applications accepted over the next fortnight. 

TFC, in a stock market filing, said that the Board of Directors had resolved on 31 December to call for a fresh round of EOIs from prospective strategic investors for an equity investment in TFC. Both local and foreign investors have been encouraged to apply. 

Prospective investors are expected to commit a minimum equity investment of Rs. 25 billion (or equivalent in foreign currency), either individually or jointly.” were among the details requested for in the CSE disclosure. 

Documents for the proof of funds for the investment, expectations of the investors, and proof of funds was also included in the list. 

The Central Bank last week told reporters that TFC had requested permission to call for a fresh round of EOIs, on the basis that the investment climate in the country has improved recently, and they could have a better opportunity for attracting an investor. 

In October, the Central Bank cancelled the licence of TFC, but said that does not prohibit the company from submitting fresh investor proposals from credible candidates.

In the three months ended on 30 June, The Finance reported a pre-tax loss of Rs. 1 billion, up from a Rs. 743 million loss a year earlier. As at end-June, it had an accumulated loss of Rs. 28 billion.

Total liabilities amounted to Rs. 30.8 billion, including deposits worth Rs. 27.6 billion. Assets were Rs. 10.8 billion, down from Rs. 12.4 billion as at 31 March.