Sri Lanka’s Multi Finance capitalized by Fairway Holdings
ECONOMYNEXT – Fairway Holdings (Pvt) Ltd, a property developer will inject 550 million rupees to capitalize Multi Finance Plc, a firm controlled by controversial Entrust group which has seen a run on deposits.
Fairway will buy 41.1 million shares at 13.40 rupees injecting 550.87 million rupees to the company under a deal backed by the Central Bank, which regulates registered finance companies, the firm said in a stock exchange filing.
Current majority shareholders Entrust Holdings Ltd and Entrust Ltd, which failed to capitalize the firm until now, has been prohibited by the regulator, from taking part in the current share placement following irregularities in the group.
A primary dealer in the Entrust group is under a criminal investigation.
Other minority shareholders would be allowed to buy 7.39 million shares offered as part of the recapitalization plan.
Following the capital injection a deposit and borrowing ceiling imposed on the firm by the central bank will be removed.