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Hatton National Bank (HNB) one of the country’s oldest and leading licensed commercial banks will soon offer 9.9% voting shares to Asian Development Bank (ADB) for a consideration of US $ 50 million or approximately Rs. 7.5 billion via a private placement.

In a disclosure to Colombo Stock Exchange (CSE) HNB said that the board of directors on a meeting held on 31st August 2016 upon an agreement entered with ADB based in Manila Philippines; had decided to consider the ADB as a Strategic Investor and to issue equivalent number of voting ordinary shares of HNB (approximately equivalent to 9.9% of issued capital) to the tune of US $ 50 million.

The disclosure further said that an ExtraOrdinary General Meeting (EGM) will be held to obtain shareholder approval for this transaction subject to relevant regulatory approval of the CSE and other government bodies. The price of new shares to be issued will be based on ‘Average Price’ of shares on 30 days trading price immediately preceding from the EGM. Accordingly, the shares will be issued as a private placement at Rs.220 per share if the ‘Average Price’ is over Rs.220 or at Rs.190 per share if the ‘Average Price’ is less than Rs.190.