Textured Jersey Lanka Private Limited (TJL), the newest Initial Public Offering to hit the market, is expected to go for a pre-IPO private placement amounting to Rs.1.7 billion, Mirror Business learns.
It is also learnt that the company yesterday hosted a presentation for prospective investors to explain placement opportunities. TJL is a company jointly owned by Sri Lanka’s Brandix Group and Asia Pacific Textiles Holdings Limited, which is a listed entity in the Hong Kong Stock Exchange.
According to a disclosure made by the Asia Pacific Textiles Holdings Limited (which is the 60 percent owner of TJL through its 100 percent owned subsidiary of Pacific Textured Jersey Holdings Limited -PTJH) to the Hong Kong Stock Exchange, about 116 million shares of TJL will be given in placements, each share indicatively priced at Rs.15 or US$ 0.1376.
The Brandix Group is expected to give 33 million shares in the placement, while PTJH will offer 83 million. Following the private placement, the shareholdings of both Brandix and PTJH will dilute from 40 percent to 34.26 percent and from 60 percent to 45.57 percent, respectively.
According to the announcement, TJL has an issued share capital of Rs. 1,597,229,000 divided into 159,722,900 shares of Rs.10 each. It is expected that each Rs. 10 share of TJL will be sub-divided in a ratio of 5 into 18, so that there will be a total of 575,002,440 shares, in issue immediately after such sub-division.
The announcement further noted that under the IPO, TJL will issue 80 million new
shares to the Sri Lankan public, and the share price will be similar to the indicative placement price.
“Immediately after completion of the TJL IPO, the shareholdings of PTJH and Brandix will drop from 45.57% to 40.00% and 34.26% to 30.08% respectively”, the announcement noted.
After the listing of TJL in the main board of Colombo Stock Exchange, it is expected that Brandix and PTJH will arrive at an agreement not to dispose shares of TJL within two years upon listing.
The announcement also said that within three years after the said two-year period, if one of them disposes any of its TJL shares, the other party shall dispose that number of TJL shares resulting in both parties maintaining their shareholding (in relation to each other) in the same proportion as at the time of listing The collective shareholding shall not fall below 51% of the total issued shares of TJL during the three-year period.
The agreement will be further extended to jointly operate in relation to certain important matters, unless the other party has given its consent in writing to vote in favor of such
resolutions.
According to the announcement, TJL net profit for the financial year ended March 31 was Rs.144 million, while the net asset value as at September 30, 2010 was Rs.5.8 billion (US $ 53,635, 000).
source - www.dailymirror.lk
No comments:
Post a Comment