Ceylon Tea Brokers to raise Rs. 205 m via Rights to finance modern warehouse

Tuesday, 22 August 2017 00:53 - - {{hitsCtrl.values.hits}}

Ceylon Tea Brokers Plc is to raise Rs. 205.2 million via a Rights Issue to finance a modern warehouse complex.

The Board of CTB on Friday resolved to issue 68.4 million shares via a three for five Rights Issue at Rs. 3 per share. The net asset value per share as at June 2017 was Rs. 2.15. The share price yesterday closed at Rs. 3.90.

The company said proceeds will be utilised to build a state-of-the-art warehousing complex with modern equipment and machinery to provide an effective and efficient service to clients while reducing costs and operating time.In May this year the company entered into a share sale agreement with Lanka Commodity Brokers to buy Logicare for Rs. 233 million and in July Logicare Ltd. signed a 39-year lease with the Sri Lanka Land Reclamation and Development Corporation for a plot of land in Muthurajawela.

For the quarter ended 30 June 2017, CTB posted a profit of Rs. 28 million as against a figure of Rs. 2.3 million. Revenue grew by 92% to Rs. 156 million.

The company’s current stated capital is Rs. 128 million represented by 114 million shares. Capital Alliance Holdings owns 81.35% stake in Ceylon Tea Brokers Plc. The public holding is 15% comprising 1,556 shareholders.