Friday Dec 13, 2024
Friday Dec 13, 2024
Monday, 28 September 2020 00:00 - - {{hitsCtrl.values.hits}}
Trade Finance and Investments PLC and Commercial Credit and Finance PLC have announced intention to amalgamate with the latter as the surviving entity.
They said Central Bank by way of letter dated 21st January 2020 approved the proposed amalgamation of Trade Finance and Investments PLC into Commercial Credit and Finance PLC and it was also approved by the Board of Directors of Trade Finance and Investments PLC and Commercial Credit and Finance PLC (COCR) on 23 September 2020.
The proposed amalgamation is subject to the shareholders of Trade Finance and Investments PLC and COCR approving the amalgamation in accordance with Section 241(5) of the Companies Act No. 7 of 2007. An Extraordinary General Meeting of the shareholders of COCR will be convened to consider and, if thought fit, pass the relevant resolutions approving the aforesaid amalgamation and matters connected therewith.
COCR currently holds 99.65% of the ordinary shares of Trade Finance and Investments PLC and upon the amalgamation such shares will get cancelled in terms of Section 240(3)(a) of the Companies Act No. 7 of 2007. The other shareholders of Trade Finance and Investments PLC will be paid Rs. 60 for each share which they hold in such company and will not be allotted any shares in COCR and Finance PLC. Consequently the number of shares in issue in Commercial Credit and Finance PLC will remain unchanged upon the amalgamation taking effect.
Based on the shareholding of the amalgamated entity as at 30 September 2020 (and assuming the amalgamation took place on such date) the stated capital, the float adjusted market capitalization, number of public shareholders and the public holding percentage of the amalgamated entity before and after the amalgamation would be as follows.
Stated capital will be Rs. 2.15 billion post amalgamation as against Rs. 247 million prior. Floated adjusted market capitalisation as at 21 September 2020 was Rs. 11 million and post amalgamation it will be Rs. 984 million. Public holding percentage as at 21 September 2020 was 0.35% and post amalgamation it will be 13.22%
