Swarnamahal Financial Services says no finality of new investor

Swarnamahal Financial Services PLC (SFS) yesterday formally informed the Colombo Stock Exchange that it was in the process of negotiating with a prospective investor in consultation with the Central Bank.

The move is with the objective of infusing fresh capital, either as a Rights Issue or issuance of new shares. 

“The potential investors has submitted a proposal to the Monetary Board seeking their approval,” SFS said, adding that it will disclosure when such proposals are materialised and approved by the Central Bank.

The Company also referred to recent press reports including in Daily FT which may be the cause for unusual activities on SFS shares though proposal for the investment has not yet materialised.  The market saw 5.8 million of SFS shares (relegated to Watch List) trading before closing at Rs. 1.20 up by 40 cents.  Last week the share price declined by 20 cents to close at 70 cents and it moved up to 80 cents day before. 

There have been concerns expressed that the Central Bank was negotiating a deal with Singapore-based Straits Grid Pte. Ltd., with the credibility of its promoters under question.