Sampath Bank said on Friday that it was re-considering the pricing of its rights issue and private placement of shares as the current price is lower than the proposed, already-announced price. It said the board of directors is due to meet on or around July 10 to reconsider this matter further. The company had on May 2 announced the proposed rights issue and private placement.

It said that on May 26, the market price of the shares dropped below the proposed rights issue price and has continued to be so. “In view of the market price of the ordinary share falling below the proposed rights issue price, the board of directors are re- appraising the pricing and the quantum of rights issue.
The matter was further complicated by the fact that there was also an intended private placement at a price well above the prevailing market value.

This has led to unavoidable delay in finalizing the issue,” the Bank said in a statement to the Colombo Stock Exchange.