Lanka Ventures moots Rs. 219 m Rights to subscribe to LVL Energy’s Rs. 465.8 m Rights

• Move aimed at settling portion of the outstanding debt of LVL Energy

Lanka Ventures (LVEN) has announced plans to go for a Rs. 219 million Rights Issue to subscribe to the subsidiary LVL Energy Fund (LVEF) Rs. 465.8 million Rights Issue. 

LVEN holds a 57% stake in LVL Energy Fund, whose Rights Issue is to settle a portion of the outstanding debt.

LVEN proposed Rights is on the basis of one new share for every six held and will involve issuance of 8.33 million shares at Rs. 26.30. LVEN share closed on Friday Rs. 30.40 and its net assets per share as at 31 December 2023 was Rs. 66.71 and at Group level it was Rs. 66.65.

DFCC-HNB joint venture Acuity Partners holds a 79.58% stake in LVEN. Its public holding is 20.4% held by 1,269 shareholders.

LVEN separately announced a Rights Issue on the basis of one new share for every five held and will involve 116.45 million shares at Rs. 4 each. 

LVEF share price closed on Friday at Rs. 5 and as at 31 December 2023 its net assets per share is Rs. 9.87, down from Rs. 10.45 as at 31 March 2023. The public holding in LVEF is 30.6% held by 1,584 shareholders.

LVEF had Rs. 510 million in short-term interest bearing borrowings as at 31 December 2023 and Rs. 581 million at Group level.

Both Rights Issues are subject to shareholder approvals.