Friday Dec 27, 2024
Friday Dec 27, 2024
Monday, 8 May 2017 01:15 - - {{hitsCtrl.values.hits}}
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.
Lanka Ceylon Group has acquired Kiffs Ltd., a manufacturer and distributor of PET bottles, for Rs. 225 million.
The acquisition is through Lankem, a fully-owned subsidiary of J.F. Packaging Ltd., in which the parent invested Rs. 320 million last month to take over the remaining 27.5% stake.
The move was to acquire 27.5% stake in JF Packaging Ltd. for Rs. 320 million. With the latest purchase, JF Packaging becomes a fully-owned subsidiary. In 2015, Lankem acquired 72.5% stake for Rs. 600 million.
