Ceylon Land to invest Rs. 1.7 b in Shaw Wallace & Hedges Rights

Friday, 30 January 2026 00:20 - - {{hitsCtrl.values.hits}}

Ceylon Land & Equity PLC said its Board has approved an investment of Rs. 1.7 billion to take up its entitlement in the Rights Issue of Shaw Wallace & Hedges Ltd., an unlisted company.

Under the transaction, Ceylon Land & Equity will subscribe to 86.32 million voting shares at a price of Rs. 17 per share, amounting to a consideration of Rs. 1.47 billion. In addition, the company will invest Rs. 236.5 million to acquire 21.5 million non-voting shares at Rs. 11 per share.

The company currently holds 172.64 million voting shares and 43 million non-voting shares in Shaw Wallace & Hedges. Following the proposed investment, its shareholding will increase to 49.2% of the issued ordinary shares of the company.

This holding will comprise 43.6% of the voting shares and 100% of the non-voting shares of Shaw Wallace & Hedges.

Ceylon Land & Equity said the investment will be funded through a combination of its own funds, temporary bank financing, and group borrowings. Major shareholders of Ceylon Land & Equity are Galle Face Properties (34.63%), Almas Holdings (24.3%), and Renuka Enterprises (11.7%).

Ceylon Land’s share ended down Rs. 0.10 at Rs. 12 yesterday on 567,854 shares traded.

As of end-September 2025, the company reported net assets of Rs. 13.44 per share with public shareholding at 49.96%.

It did not report any borrowings, with group-level retained earnings at Rs. 2 billion on a Rs. 4.1 billion balance sheet.