Wednesday Feb 18, 2026
Wednesday Feb 18, 2026
Wednesday, 11 February 2026 00:21 - - {{hitsCtrl.values.hits}}
TESS Agro PLC has said it will proceed with a private placement of ordinary voting shares, abandoning a previously proposed Debenture and Warrant structure as part of its ongoing capital restructuring and funding strategy.
The company said its Board of Directors has approved the issuance of up to 125 million ordinary voting shares by way of a private placement, representing up to 18.5% of the issued ordinary voting, subject to shareholder and regulatory approvals.
The shares are proposed to be issued at a price of Rs. 2 per share to Oman-based SE Capital Trading SPC.
TESS Agro said the proposed private placement will replace the Debenture and Warrant structure announced to the market on 27 January 2026, with the revised structure forming part of the company’s broader capital restructuring and funding plans.
The company’s current stated capital stands at Rs. 263 million, represented by 677,063,049 voting shares and 66,666,667 non-voting shares.
Proceeds from the proposed share issue will be utilised primarily for the repayment of existing borrowings, as well as to meet working capital requirements and capital expenditure.
The private placement is subject to obtaining in-principle approval from the Colombo Stock Exchange for the issue and listing of the shares, compliance with the Listing Rules of the Exchange and the regulations of the Securities and Exchange Commission of Sri Lanka, and approval from shareholders at a General Meeting.
Yesterday, the price of Tess Agro voting shares closed down 10 cents at Rs. 2.10 with more than 1.5 million shares changing hands on a turnover of Rs. 3.2 million. Non-voting shares ended unchanged at Rs. 1.50.
As of end-December 2025, the company reported net assets of 39 cents per share. Long term borrowings amounted to Rs. 343.3 million and short-term borrowings amounted to about Rs. 156 million on a Rs. 873.8 million balance sheet.
Top voting shareholders included IPEK SA Ltd. (29.99%), Silver Edge Investments (25.55%) and D. Fernando (16.32%).
