Tuesday Oct 06, 2026
Tuesday Oct 06, 2026
Monday, 5 October 2026 04:38 - - {{hitsCtrl.values.hits}}
Sanasa Life Insurance Company PLC said it is planning to raise Rs. 1.05 billion through a Rights issue to increase its regulatory capital, and will seek shareholder approval to sell all or part of its 53.5% stake in Sanasa General Insurance Company Ltd., (SGIC).
The Board, at a meeting on 29 September, 2026, resolved to issue 104,534,556 new ordinary voting shares at Rs. 10 each, in the ratio of two new shares for every three held. Regulatory capital is the capital an insurer must hold to meet the solvency requirements set by the regulator.
One unlisted warrant will be attached to each rights share allotted, giving the holder the right to buy a further share at Rs. 10 at any time within 24 months of the warrant’s issue. If all warrants are exercised, the company would raise a further Rs. 1.05 billion.
The company’s present stated capital is Rs. 1.57 billion, represented by 156,801,834 ordinary shares, which are unlisted. The rights cannot be transferred or sold.
The issue is subject to the approval of shareholders at a general meeting, the Securities and Exchange Commission of Sri Lanka under Section 81 of the SEC Act, and the Insurance Regulatory Commission of Sri Lanka (IRCSL), as applicable.
The Board also resolved to recommend to shareholders, at an Extraordinary General Meeting (EGM) to be convened, that they rescind an ordinary resolution adopted at the company’s Annual General Meeting on 30 June, 2026 relating to its strategic plan for its shareholding in SGIC.
Shareholders will further be asked to authorise the Board to divest all or part of the company’s holding of up to 30,614,059 SGIC shares, and to determine the structure, purchaser, consideration, price and other terms of the sale. The divestment is subject to regulatory and shareholder approvals, the Companies Act, No. 7 of 2007, and IRCSL requirements, where applicable.
