Agalawatte Plantations to raise Rs. 2 b via Rights

Agalawatte Plantations Plc is to raise Rs. 2 billion via a Rights Issue to part settle related party borrowings.

The company’s Board of Directors has resolved a Rights Issue of 21 shares for every four shares held at Rs. 15.30 each. It involves issuance of 131.25 million shares. At present the stated capital of the company is Rs. 250 million represented by 25 million shares and one Golden Share. 

The purpose of the fundraiser is to part settle related party borrowings amounting to Rs. 2 billion obtained during April 2017 to December 2017 for settling the company’s outstanding bank borrowings, statutory dues and funding working capital requirements that existed during that period. 

The Rights Issue is subject to shareholder and regulatory approval. 

D.R. Investments Ltd. holds 61.22% stake of Agalawatte Plantations Plc. Among the other major shareholders are Sonia Win Yen Ng (14.28%) and Dr. T. Senthilverl (10.23%). The public holdings is 38.37% held by over 11,000 shareholders.

For the nine months ended 30 September 2017, the company reported revenues of Rs. 1.38 billion, up by 49%. The result from operating activities was Rs. 118.2 million as against a loss of Rs. 113 million a year ago. The finance cost of Rs. 180.5 million saw the company reporting a pre-tax loss of Rs. 61.9 million in comparison to a loss of Rs. 371 million in the first nine months of the previous financial year.