Ravi LADDUWAHETTY
Alufab PLC, manufacturers, and suppliers of aluminium architectural systems, will go for a Rs 305 million rights issue end July aimed at raising working capital.
There will be 8,038,800 ordinary shares offered in the proportion of two new shares for every ordinary share at Rs 38 each held to the shareholders registered at the end of trading as at the annual general has been incurring meeting which is scheduled for end July. The directors provided the most essential funds to sustain the business and that is the reason for the rights issue.
These rights will be made use of for the provision of working capital that will be used to settle external creditors and enable the company to bid for new projects which will be coming up shortly, Alufab Managing Director and CEO Bernie Dole told Daily News Business yesterday.
The price of Rs 38 per share will also be considered fair, he said.
Alufab will also be going in for a Rs 87 million Private Placement, which will convert the directors’ loans into equity and on the same basis of the rights issue and will also be offered at Rs 38.
“The conversion of debt into equity will be on the same basis as the rights issue and also at Rs. 38 per share where a total of 2,290,000 shares will be issued as set out in the Listing Rules of the Colombo Stock Exchange, subject to the company obtaining regulatory rules as well as from the Colombo Stock Exchange in principle to the issue and listing of such shares,” Dole said.
The directors also propose to dilute their shareholding to enable the company to comply with the Securities and Exchange Commission’s objective to increase the public float of listed companies.
source - www.dailynews.lk
No comments:
Post a Comment