Lankem Ceylon Plc has decided to raise Rs. 480 million via a one-for-two Rights Issue at Rs. 40 each.
The move will issue 12 million shares with its current stated capital being Rs. 536.2 million.
The share price of Lankem on Friday closed at Rs. 57.40. The net asset per share is Rs. 59.55 as at 31.12.2016, down from Rs. 89.88.
The funds raised will be used to settle inter-company borrowings and to meet working capital. As at 31.12.2016, Lankem had Rs. 2,641 million in short-term dues (non-trade) to related parties. At the Group level it was Rs. 332.6 million.
EB Creasy and Company and related party The Colombo Fort Land and Building and Darley Butler control nearly 79% stake in Lankem Ceylon. The previous Rights Issue from Lankem was in 2010 on the basis of a 1-for-7 raising Rs. 255 million.
www.ft.lk
The move will issue 12 million shares with its current stated capital being Rs. 536.2 million.
The share price of Lankem on Friday closed at Rs. 57.40. The net asset per share is Rs. 59.55 as at 31.12.2016, down from Rs. 89.88.
The funds raised will be used to settle inter-company borrowings and to meet working capital. As at 31.12.2016, Lankem had Rs. 2,641 million in short-term dues (non-trade) to related parties. At the Group level it was Rs. 332.6 million.
EB Creasy and Company and related party The Colombo Fort Land and Building and Darley Butler control nearly 79% stake in Lankem Ceylon. The previous Rights Issue from Lankem was in 2010 on the basis of a 1-for-7 raising Rs. 255 million.
www.ft.lk
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