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Friday, December 21, 2012

Coco Lanka mum over Rights Issue

Renuka Shaw Wallace Plc (formerly Coco Lanka) is yet to disclose the fate of its Rights Issue, even though two weeks have lapsed since its closure.

The company went for a five for four share rights issue for both voting and non-voting shares at Rs. 35 and Rs. 28 respectively per share, aimed at raising Rs. 1 billion.

Though the issue closed on 7 December, the company hasn’t disclosed whether it was oversubscribed or undersubscribed.

Post-Rights Issue, a sub division of shares into two is pending as well based on the shareholding as at end of trading of 3 January 2013.

Coco voting share yesterday closed at Rs. 35, up by one rupee with 4,107 shares traded. Non-voting was Rs. 28.10, up by 10 cents. Funds raised via Rights were to be used for investment in Renuka Consumer Foods Ltd. (Rs. 600 million) and the settlement of short-term borrowings obtained from Renuka Agro Exports (Rs. 300 million).

The balance Rs. 18 million was to meet the cost of the Rights Issue.

Major shareholders of COC are Renuka Agro Exports (50.6%), J.B. Cocohell (5.4%), Renuka Hotels Ltd., (3%), investor K.C. Vignarajah (3%) and Capital Alliance (2%) as of end September 2012.

As of September 2012 net asset value per share of the Group was Rs. 61.85, up from Rs. 57.44 in March whilst Consolidated earnings per share was Rs. 5.41 in the first half, up from Rs. 2.99 a year earlier. In the quarter ended September it was ERs. 1.70, down from Rs. 2.20 a year earlier.

The company recorded a consolidated Turnover of Rs 1.4 billion in the first half, a 44% increase from the corresponding period. Profit after taxation was Rs 221 million versus Rs 157 million for the period last year; of which profit attributable to shareholders was Rs 126 million, up by 81% over the first half of FY12. In the second quarter it was down by 23% to Rs. 39.8 million.

The Company is now an integrated Food & Beverage organization consisting of FMCG distribution and manufacturing, Food Service, Agri Exports and Dairy. This was achieved by the company investing Rs 450 Mn in Renuka Consumer Foods Ltd which acquired a 60% stake in Shaw Wallace Ceylon Ltd. The groups own brand portfolio now consists of Renuka Coconut products, Richlife Dairy products, Captain Jack Mackerel and Soya, Plaza Mackerel, Sun Gold Instant drink powder, Cheers Fruit juices and Rainers colouring andessences. In a statement accompanying September quarter results, The group said it was optimistic on the opportunities available within the food and beverage industry whether it be commercial agriculture, Dairy, Fishing and hope to unlock synergies within the organization and create value supported by the favourable government policy.

source - www.ft.lk