The rights issue comprised the issue of 12.5 million ordinary shares at a reasonable and fair price of Rs 73 per share together with 12.5 million warrants executable in 2011, 25 million warrants executable in 2014 and a further 25 million warrants executable in 2015 at exercise prices of Rs 102, Rs 118 and Rs 142 per share respectively.
The new shares shall rank pari passu with the existing Ordinary Shares of the company and will be entitled to any dividends declared after the final allotment of shares.
The proceeds from this Rights Issue of shares is expected to enhance the capital of the company in line with the expected increase in the level of its operations and will be utilized for further expansion and modernization of the manufacturing units of CLPL, purchase of 51 percent controlling stake and 8.31 percent stake in South Asia Textile Industries (Pvt) Ltd. and Dankotuwa Porcelain PLC respectively, and for investments possibly in publicly listed as well as private companies in Sri Lanka.
The investments will be in distressed companies which have potential to be revived and made profitable within a reasonable period of time with the introduction of capital, financial discipline, controls and management guidance.
"The rights issue will help to take CLPL to greater heights by way of expansion of our facilities and modernization of the factory whilst exploring lucrative new business opportunities internationally in line with our mission to be the leader in the industry", said CLPL Chairman Lalith Heengama. "CLPL also has plans to diversify and invest in other lucrative and growing industries with significant potential in order to achieve our strategic corporate objectives", he said.
source - www.dailynews.lk
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