Thursday 15 January 2015

OGL calls EGM on 20th January 2015 to save 4,000 jobs

Directors of the only listed garment manufacturer Orient Garments Plchas decided to go ahead with a rights issue first announced on 9th September 2014.

The General Meeting seeking shareholder approval for a 1:1 rights issue of ordinary shares at an issue price of Rs 15/- and provisional allotment is set for 20 January 2015 and ex rights for the following day with share transfer books kept open, stated the CSE website.

The rights issue was called to infuse much needed capital to meet overdue statutory payments and other outstanding, which have been hampering the progress of the company explained OGL Chief Operating Officer Udeni Abeykoon.

Orient Garments Plc enjoys the custom of high profile buyers including giant retailer Tesco, as well as renowned labels such as Dillards, Next, SuperDry, Guess and others who continue to support the company since Adam Investments Ltd wrested management control from the previous major shareholder in a hostile takeover last year.

OGL COO Udeni Abeykoon noted in an interview held on 10th January at OGL office at Mattegoda that the rights issue is primarily to safeguard the employment of over 4,000 faithful workers who have stood by the company through thick and thin and to drive the operations forward with renewed vigour and excellence.

"We are confident that our shareholders will support this noble cause to safeguard the turnaround of the company and employment of the 4,000 workers", she explained. She further stated that she has already received commitments from some major shareholders to this effect.

Since the takeover on 8th January 2014, OGL has spruced up its compliance standards, increased the number of machines in operation by 76% – from 1100 to 1940 machines - and carried out an employee skill upgrade initiative resulting in improved efficiency and greater confidence by its highly quality conscious international buyers. The revamped marketing department has built a strong confirmed order book securing a bright future for the company.

"Since the beginning of last year we have expanded our reach to new markets and added new orders from buyers in Germany and Australia. We just need capital to make good on them. It will help us bring the company back to its former glory and save the jobs of our loyal workers", she stated.

As at 30th September 2014 the major shareholders of OGL are: Dr.TSenthilverl 45.4%
Adam Investments Limited 39.8%
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