July 01, 2010 (LBO) - Sri Lanka's Environmental Resources Investment (ERI) said it will put 300 million rupees into a leisure industry dotcom which had negative net assets and its subsidiary.
ERI said the cash will be used to repay debt and expand.

ERI said it will buy 10 rupee 12 percent preference shares for 200 million rupees from OlanCom (Pvt) Ltd, formerly known as RoomsNet International (Private) Ltd, a firm set up in 2000.

The shares will have an option to convert to ordinary shares.

OPL runs a travel booking system and secure payment gateways. ERI said the firm had negative net assets of 385.7 million rupees in December 2008.

It had revenues of 110 million rupees based on volumes of 10.1 million sterling pounds (2.04 billion rupees).

OPL has a fully owned foreign unit RoomsNet International Ltd of UK. It had a Sri Lankan unit called Enterprise Technology (Pvt) Ltd (ETPL), which "focussed on enterprise solutions" ERI said without elaborating.

ERI planned to put 100 million in to ETPL through 12 percent ten rupee preference shares with an option to convert to ordinary shares.

The OPL group employed 120 staff. Key personnel included chairman E B Wickramanayake and chief executive was Kithsiri Gunesekara who was also a director.

The filing did not mention when the conversion option could be exercised, its price or the current outstanding shares of OPL and its subsidiary.

source - www.lbo.lk