MTD Walkers’ Rs. 2.4 b Rights Issue oversubscribed
Monday, 26 January 2015 00:32
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The Rs. 2.4 billion Rights Issue of MTD Walkers Plc was oversubscribed, comfortably drawing applications for over and above the number of shares offered under the rights.
MTD Walkers Plc issued 53,290,428 new ordinary voting shares in the ratio of 466 shares for every 1000 shares held by the existing ordinary voting shareholders at an issue price of Rs. 45 per share raising capital amounting slightly over Rs. 2,398 million. Consequently, MTD Walkers Plc’s ordinary voting shares increased to 167,647,568 shares. The subscription was closed on 22 January.
While the primary objective behind the rights issue was to raise funds to acquire 100% equity capital in Wincon Development Ceylon Ltd., the company intends to duly exploit this opportunity to finance its growing working capital requirements of the group from the excess funds received from the Rights Issue.
Speaking on the successful Rights Issue, the Executive Deputy Chairman of the group, Jehan Amaratunga, stated: “The overwhelming response to the Rights Issue demonstrates the confidence and trust placed on MTD Walkers Plc by our shareholders, which enables us to forge ahead with our growth plans. The Rights Issue has given us the opportunity to diversify the group operations and further advance as an infrastructure solutions provider following our commendable performance recorded this year so far. The trust and support displayed by our shareholders towards our strategic direction and future plans have been very encouraging.”
MTD Walkers Plc, with its subsidiary companies, CML-MTD Construction, Northern Power Company, Walkers Piling and Walker Sons and Co. Engineers, is engaged in multidisciplinary infrastructure activities locally and overseas. The acquisition of Wincon Development Ceylon Ltd. signals its foray into real estate and property development given its belief of future upside.
