Friday, 21 October 2016 00:01
The Commercial High Court yesterday issued an Interim Order to Hatton National Bank (HNB) and its key shareholders preventing them from holding an Extraordinary General Meeting (EGM), which was scheduled for next week, until a court decision is made on the bank proceeding with a share issuance of $ 50 million to the Asian Development Bank (ADB).
The interim order was given when the petitioner Stassen Exports appeared before Colombo Commercial High Court Judge Shiran Gunaratne. Nihal Fernando PC along with Attorneys-at-Law Romali Tudawe, Harshula Seneviratne and Rajindra Jayasinghe, instructed by Attorney-at-Law Upendra Gunasekera, appeared on behalf of the petitioner.
The Interim Order, pending the final determination of the application by the respondents, prevents the Extraordinary General Meeting of HNB scheduled for 26 Wednesday 2016 or any time thereafter for the purpose of obtaining the approval of shareholders to issue shares to the Asian Development Bank (ADB) by way of a private placement, in consideration of the proposal made by ADB to make an equity investment in HNB, in any manner whatsoever, according to the determination.
The HNB board in September approved the issuance of shares for $ 50 million to the ADB by way of a private placement, making the development lender a strategic investor.
“The proceeds of the issue of shares by private placement as aforementioned will be utilised for the purpose of strengthening the capital base/balance sheet of the bank and supporting the overall business growth of the bank,” the bank said in a stock exchange filing at the time.
The private placement of up to 9.9% of the shareholding is subject to shareholder and regulatory approval. The shares will be offered at the average price at which the shares were traded during the 30-market-day period preceding the date of the EGM at Rs. 220 if the average price is more than Rs. 220, and Rs. 190 if the average price is less than Rs. 190.
In March HNB entered into an agreement with ADB to raise $ 100 million by way of a seven-year senior debt, HNB said in a press release. It was earmarked as the largest transaction of ADB with a local bank and the raised funds were to have been deployed towards infrastructure development projects, with special emphasis on renewable energy, power and irrigation.
» CCS.N0000 ( Ceylon Cold Stores)
» Sri Lanka plans to allow tourists from August, no mandatory quarantine
» When Will It Be Safe To Invest In The Stock Market Again?
» Dividend Announcements
» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්රතික්ෂේප කළ ගණිතඥයා
» SEYB.N0000 (Seylan Bank PLC)
» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
» The Korean Way !
» In the Meantime Within Our Shores!
» What is Known as Dementia?
» SRI LANKA TELECOM PLC (SLTL.N0000)
» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
» Equinox ( වසන්ත විෂුවය ) !
» COMB.N0000 (Commercial Bank of Ceylon PLC)
» REXP.N0000 (Richard Pieris Exports PLC)
» RICH.N0000 (Richard Pieris and Company PLC)
» Do You Have Computer Vision Syndrome?
» LAXAPANA BATTERIES PLC (LITE.N0000)
» What a Bank Run ?
» 104 Technical trading experiments by HUNTER
» GLAS.N0000 (Piramal Glass Ceylon PLC)
» Cboe Volatility Index
» AHPL.N0000
» TJL.N0000 (Tee Jey Lanka PLC.)
» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
» Bitcoin and Cryptocurrency
» CSD.N0000 (Seylan Developments PLC)
» PLC.N0000 (People's Leasing and Finance PLC)
» Bakery Products ?
» NTB.N0000 (Nations Trust Bank PLC)
» Going South
» When Seagulls Follow the Trawler
» Re-activating
» අපි තමයි හොඳටම කරේ !
» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
» SAMP.N0000 (Sampath Bank PLC)
» APLA.N0000 (ACL Plastics PLC)
» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
» Banks, Finance & Insurance Sector Chart
» VPEL.N0000 (Vallibel Power Erathna PLC)
» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
» WATA - Watawala
» KFP.N0000(Keels Food Products PLC)
» Capital Trust Broker in difficulty?
» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
» What Industry Would You Choose to Focus?
» Should I Stick Around, or Should I Follow Others' Lead?