Touchwood Chairman answers CSE

Tuesday, 1 October 2013 01:21 -     - {{hitsCtrl.values.hits}}

Touchwood Investments PLC’s (TWOD) newly appointed Chairman L.W. Kiwlegedara has responded to questions raised by the Colombo Stock Exchange (CSE) over contents published arising from last week’s AGM in the media including the Daily FT. The Chairman said a group of new investors have joined to support TWOD, which has faced certain liquidity and other problems of late. “We believe the concept underlying this company is advantageous for the economy, environment and in particular the country in general,” he added. With the view to address the current issues faced by the company, the investors envisage investing Rs. 200 million in the short term and are also working on securing funds worth $ 21 million to develop projects including Sandalwood. With a long term vision we would like to roll out a detailed strategic plan which includes a restructuring process which in turn will focus on improving existing capabilities and strengthen the company’s position,” Kiwlegedara said. The company is also in the process of negotiating with some very capable ex-management personnel who have extended their willingness to help the company. “We also wish to reassure all stakeholders of the company that we will strictly follow all rules, norms and good corporate governance. With the above plan, we trust all stakeholders will build up confidence on the company and thus will increase the value of the company from its current status,” the TWOD Chairman said. He also stressed that the company will take necessary actions with regards to the winding up application. “We trust that the outcome of this would be in favour of the company,” Kiwlegedera added. Following the lifting of Friday’s trading halt yesterday at 10:30 a.m. TWOD shares began trading with 36.4 million changing hands via 3,717 trades for Rs. 196.5 million. It closed at Rs. 5.10, up by 6.25% or 30 cents. It hit an intra-day high of Rs. 5.60.