Sri Lanka CT group raises funds for leisure, real estate projects

Mar 03, 2011 (LBO) - Sri Lanka's CT Holdings is to raise 2.65 billion rupees through a private placement with foreign funds and a rights issue to invest in leisure and real estate and repay debt, a statement said.

The group, previously known as Ceylon Theatres, will raise two billion rupees through a private placement of its shares at 210 rupees each with several UK-based funds.

It will place two million shares with the UK Ruffer Pacific Fund, 4.3 million shares with CF Ruffer Total Return Fund and almost 3.35 million shares with CF Ruffer Absolute Return Fund, the CT group said in a stock exchange filing.

The funds are managed by Ruffer LLP, a UK-based asset manager, which looks after investments for private clients, trusts, charities and pension funds.

At the same time, CT Holdings said it plans to make a rights issue of just over three million shares at 210 rupees each in the proportion of one share for 55 shares held by existing shareholders to raise 650 million rupees.

The investors in the private placement would not be eligible for the rights issue.

CT Holdings' stated capital as at December 31, 2010 was 516.9 million rupees consisting of 170.3 million ordinary shares.

"The objectives of the private placement and rights issue are to fund real estate and leisure projects of the group and strengthening of the balance sheet through repayment of debt," the statement said.

source - www.lbo.lk