The Finance Company (TFC) has called Expressions of Interest (EOI) from prospective strategic investors for Equity Investment in the firm.
This was resolved by the TFC’s Board of Directors during a meeting held on the 31st of December 2019.
In a letter directed to the Colombo Stock Exchange, the TFC mentioned that a minimum equity investment of Rs. 25 billion is required for the submission of EOIs.
The deadline for accepting EOIs will be 14 days from the date of the publication of the paper advertisement and the investors are required to provide documents for the proof of funds for the investments, their credentials, and expectations
The Central Bank of Sri Lanka said the troubled finance company, the Finance Company PLC (TFC), has not find a suitable investor to revive he company and it is now vital to find an acceptable investor to bring equity capital to TFC within an agreed time frame to avoid further deterioration of the financial condition of the company
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The Finance Company PLC (TFC), a Finance Company licensed under the Finance Business Act No. 42 of 2011 (FBA) was severely impacted by the failure of a number of financial institutions within the Ceylinco Group in 2008.
Since then the financial status of the company deteriorated gradually and it currently operates with severe liquidity issues, which need to be addressed immediately. Although, several efforts were made to identify prospective investors and to restructure the company, such efforts have not materialized to a satisfactory level yet.
The Monetary Board of the Central Bank of Sri Lanka (CBSL) having considered the weak financial performances of TFC, took number of regulatory actions under the provisions of FBA, with effect from 15th February 2019, with a view to safeguard the interests of the depositors and other stakeholders of the company.
The regulatory measures included suspension of accepting new deposits, withdrawal of deposits and disbursement of loans and advances to facilitate the restructuring process of TFC. The primary objective of the regulatory actions was to identify a potential investor for TFC within a reasonable time period.
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