Sept 13, 2016 (LBO) – Sri Lanka’s Kotagala Plantations is to raise 800 million rupees by way of a rights issue, subjected to exchange approval, the company said in a stock exchange filing.
The company is to issue and list 80 million new ordinary shares at 10 rupees each in the ratio of two new shares for every one share held.
The proceeds will be utilized to settle outstanding statutory liabilities and to meet working capital requirements. The current stated capital of the company is 680 million rupees, the stock exchange filing said.
The directors of Kotagala Plantations have also decided to sub divide the shares following the proposed rights issue being fully subscribed.
Accordingly, 120 million ordinary shares will be subdivided on the basis of every two shares being sub-divided into three shares, thereby increasing the number of shares to 180 million shares.
The company said, in the event of right issue being undersubscribed, the number of shares to be subdivided and the increased number of shares arising out of such subdivision would be a lesser amount than is stated above.
The subdivision however shall not result in a change in the proposed stated capital of the company.
Kotagala Plantations said the subdivision will be effected after 20 market days from the last date of acceptance of the rights issue.
Both the rights issue and subdivision of shares will be subjected to the shareholder approval at an Extraordinary General Meeting.