SEC lifts trading suspension on Trade Finance and Investments Plc

Wednesday, 21 December 2016 00:00 - - {{hitsCtrl.values.hits}}

The Securities and Exchange Commission has lifted the suspension of trading of shares of Trade Finance and Investments Plc (TFI) with effect from 10.30 a.m. today.

Trading was suspended pending the completion of the procedure specified by SEC to provide dissenting shareholders with an opportunity to retain their shares in the company and to continue as shareholders thereof.

The TFI share last traded on 4 December 2014 and the share price closed at Rs. 27.

In August 2014, Commercial Credit and Finance Plc (CCF) became the holder of 98.34% stake of TFI pursuant to a market purchase and mandatory offer made at Rs. 28 per share. Thereafter CCF sought to utilise the provisions of Section 246 of the Companies Act to compulsorily purchase the remainder of shares of TFI and sent out a circular to its minority shareholders to this effect along with the purchase consideration for such remaining shares at Rs. 28 each. This action was based on legal advice received by the CCF that Section 246 of the Companies Act could be read on a standalone basis.

However, the SEC in July this year informed the company that Section 246 could be read on a standalone basis and should be read as a part of VIII of the Companies Act which deals with amalgamations. SEC directed the CCF and TFI to give the former minority shareholders of TFI the opportunity to continue as shareholders of TFI if they so desired.