The Board of Directors of TKS Finance Limited is proposing a Rights Issue of 1:7 to raise Rs.109 million to increase the stated capital of the company to Rs. 1 billion.
The current stated capital of the company is Rs. 902 million and the rights issue will enable the company to meet the minimum stated capital of Rs. 1 billion as per the Central Bank (CBSL) Guidelines, a company press release said.
The main shareholder of the Company, Dato Seri Tiong King Sing, is expected to subscribe to his full entitlement of the rights issue. The company will allow the staff of the company and some of its depositors to subscribe to the rights issue to enable them to benefit from the future capital gain, being shareholders of the company.
Some senior officers of the TKS staff and some depositors have already consented to subscribe shares of the right issue. The company is expected to be listed on the Colombo Stock Exchange by the third Quarter of 2019.
The Malaysian company, has signed a Letter of Expression of Interest to take up a strategic stake in the company subject to a due diligence to be conducted .
The Malaysian company is a venture capital company and is involved in IT technology and their participation in a strategic stake in the company, will contribute towards the future growth of the company particularly with the introduction of IT Infrastructure into the finance business and enabling the company to be more competitive against its peers.
The Board of Directors of the TKS Finance Ltd observes that subscription of the rights issue by the staff of the company is very encouraging and it reflects the confidence they have on the company.
The issue is expected to be completed this month.