Nation Lanka Finance PLC is exploring possibilities of divesting some stocks and unprofitable subsidiaries from group’s portfolio.
Chairman of Nation Lanka Finance PLC Jayantha Dharmadasa in the latest review of the company says that the group had already negotiated an agreement to divest their fully owned subsidiary Nation Lanka Equities (Pvt) Limited for a consideration of Rs 160 million.
He further notes that they are looking into viable solutions regarding the other loss making subsidiaries like First Lanka Treasuries and Ceylinco Towers. However, as they divest these companies, the group is examining the possibility of liquidation and sale of assets.
“We are also considering a private placement of debt, either in the form of a subordinated debenture or a preferential share issue, to raise Tier 2 capital” Dharmadasa points out. He says that company’s ongoing efforts to improve compliance and internal controls will return Nation Lanka to full compliance with Central Bank regulations in the new financial year.