Friday, July 29, 2011

Lankem buys 61.88% of Agarapatana for Rs.1.1 bn

Lankem Developments PLC (LDEV) in a filing to the stock exchange said the firm invested Rs.1.185 billion to purchase an equity stake of 61.88% in Agarapatana Plantations Ltd.

Back in March 2011, LDEV said it had decided to come up with the rights issue, in a bid to raise Rs.2.5 billion for an investment in acquisition of 61.88% of Agarapatana Plantations Ltd and for further investments in plantations, leisure industry and hydro power plants.  Subsequently, in a stock exchange filing, Lankem Developments said it will issue 15 rights per share at a price of Rs.25 each to acquire 47,417,276 (61.88% stake) ordinary shares of Agarapatana Plantations Ltd at a total cost of Rs.1.185 billion.

In another filing to the stock exchange, Kotagala Plantations  (KOTA) said it expects to earn Rs.150 million, disposing 6 million shares of Agarapatana Plantations to Lankem Developments.

 Lankem Ceylon PLC (LCEY) in a statement to CSE later said, its earlier subsidiary Lankem Developments PLC (LDEV) has become an indirect subsidiary of the company as the rights issue had only been able to raise nearly half of the anticipated Rs.2.5 billion.

Accordingly, Lankem Plantations Holdings became the company’s immediate parent followed by the recently concluded rights issue. Accordingly, Lankem Plantations Holdings now holds 56.25% of LDEV whilst Lankem Ceylon (LCEY) earlier held a little over 50% of LDEV, prior to rights issue.

Mirror Business earlier reported that though Lankem Ceylon PLC (LCEY) subsidiary Lankem Developments (LDEV) was to raise Rs.2.5 billion via rights, it has only managed Rs.1.32  billion as at June 7, as per a stock exchange statement by the company.

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