The shareholders of Multi Finance PLC (MFL) at an Extraordinary General Meeting (EGM) held on 2 September 2011 formally approved a special resolution, to convert the debt of its holding company into ordinary voting shares.
The company which got listed in May 2011 on the Diri Savi Board by way of an Introduction has been an active trading counter, amongst the retail investors in the recent past.
With the conversion of debt of the holding company into equity, the Net Asset Value will enhance by Rs. 156,999,990 in addition to saving of interest cost and thereby increasing the overall profitability and earnings. As decided by the Board of Directors and as approved at the EGM, Multi Finance Plc would be converting the debt at a price of Rs. 35 per share. These ordinary voting shares would be issued and listed in the Colombo Stock Exchange by way of a private placement on 12th September 2011 and will rank pari-passu to the existing shares of the company.
As stated by company officials after this conversion, the public holding of the company would be 15.44% and the company is presently on an aggressive plan to revolutionise the finance sector.
A registered finance company with a history spanning over 37 years, Multi Finance Plc said it was looking forward to expand its branch network in the near future, to launch its products and services amongst the rural sector as well.
The company officials feel that there is ample opportunity in the rural markets and is in the process of expanding its micro financing business. The strength and stability of the company is appositely reflected in the company’s share price and its resilience during volatile market conditions.
Presently the company which is headquartered in Kandy, has offices in Colombo, Gampaha, Kurunegala and Matara and has obtained Central Bank approval for disbursing funds for leasing, hire purchase, pawning, mortgage and other loans and for accepting savings and fixed deposits from the public.
The Board of Directors, spearheaded by newly appointed Chairman, Kuvera de Zoysa and Deputy Chairman Mohan Ratnayake is confident that Multi Finance PLC would become a household name in the near future. Under the guidance of its Group Executive Director/ CEO, A. H. M. Riyaz the company is now poised to move into new business areas and expand its footprint in the market, with innovative products and services, Multi Finance Plc said in a statement.