Vanik Money

March 06, 2007 (LBO) – The merchant bank Vanik Incorporation said it had given 51 percent control of its money broking unit to employees, in a bid to retain skilled staff. Vanik had originally told creditors who had an arrangement with the firm, that it would sell 40 percent of Vanik Money Brokers Ltd (VMBL) to employees since the firm was totally dependent on it current skilled staff in an industry where 'very high turnover of employees' was seen.

"Upon negotiations with the said employees it became necessary to divest a 51 percent of the issued capital of VMBL instead of a 40 percent thereof as was originally envisaged," Vanik said in a statement to the Colombo Stock Exchange Tuesday.

Vanik has sold 76,506 shares at 23 rupees per share to employees for a consideration of 1.75 million. The net asset value per share at the sale date of October 31 was 20.18 rupees.

Vanik says the resolution place before the creditors had permitted Vanik to make the variation.

Vanik has been slowly selling down its assets to pay off moneys owed to creditors. Vanik shares closed at 2.10 cents, down 20 cents on Tuesday.