Aug 25, 2010 (LBO) - Sri Lanka's Overseas Realty (Ceylon) is to raise 4.2 billion rupees in a one for two rights issue at 15 rupees a share by issuing 281,161,453 new ordinary shares, a stock exchange filing said.
The issue is for the compulsory redemption of non-convertible cumulative redeemable preference shares issued to Shing Kwan Investment (Singapore), part of the Shing Kwan group, its main shareholder, and meet working capital needs of planned projects.
Shing Kwan Investment (Singapore) subscribed to the preference shares as part of a company restructuring in 2005.
The rights issue is not underwritten but the statement said the parent firm, Shing Kwan group, will subscribe to its entire entitlement and any balance to ensure full redemption of the preference shares to the group unit.
Overseas Realty has said it is pushing ahead with Colombo's largest property project amid renewed buying interest in apartments after the end of a 30-year war.
Overseas Realty owns Colombo's World Trade Centre building which houses the Colombo Stock Exchange and is jointly developing Havelock City, an 18-acre block of land with state-run Bank of Ceylon.
Havelock City has started work on a third apartment block, with sales of around 70 percent out of 226 apartments in the first two towers the firm is building being completed.
The first two towers had cost about 25 million US dollars.
Sri Lanka's property market is recovering after its ethnic war ended in May 2009.
source - www.lbo.lk
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