Sri Lanka agri firm in cash call, moves to FMCG

Oct 14, 2012 (LBO) – Coco Lanka Ltd, a food processing and exporting firm said it was making a billion rupees cash call on shareholders to move into fast moving consumer goods retailing and become a holding company. Directors have resolved that both deals “do not constitute major transactions as defined by section 185 of the Companies Act No.7 of 2007,” the firm said.

The firm was planning to sell 27 million ordinary shares for 35 rupees in the proportion of five new shares for every five existing, and 2.2 million non-voting shares in the same proportion at 28 rupees a share.

The firm now had 21.6 million ordinary shares and 1.8 million non-voting stock.

The share sale would bring in 1,008 million rupees of which 690 million rupees would be invested in RCL and 300 million rupees would be used to settle short term borrowings of another unit, Renuka Agro Exports Ltd.

Coco Lanka, will be re-named Renuka Shaw Wallace Plc, with Shaw Wallace Ceylon Ltd, an old-established which has agencies for tinned fish, food essences and instant drinks being brought under its umbrella from a related firm.

The firm said it had bought 59 percent of Shaw Wallace Ceylon Ltd from Renuka Holdings Plc for 406 million