Malwatte Valley Plantations has announced a unique Rights Issue of voting and nonvoting shares to raise Rs. 576 million to finance its foray into the leisure sector.
The company’s board at its meeting last week resolved to have a rights issue mixing voting and non-voting shares. The basis is for every 10 voting shares held, one voting share and three non-voting shares as well as for every 10 non-voting shares held one voting share and three non-voting shares will be offered at Rs. 6.75 for voting and Rs. 5.50 for non-voting share.
Consequently 24.759 million voting shares will be issued along with 74.277 million non-voting shares. The company’s current stated capital is Rs. 373 million. Malwatte said proceeds from the Rights will be utilised for diversification into the leisure sector.
The Rights Issue, subject to regulatory and shareholder approval, is at a discount to the market as Malwatte voting share on Friday closed at Rs. 9.80, up by 30 cents and non-voting finished up 40 cents to Rs. 9.50.
The net asset per share is Rs. 78.98 as at 31 March, 2011.
In the first quarter of FY2011, Malwatte Valley posted a Rs. 198.6 million net profit, up from Rs. 119.8 million a year ago. In the 31 December, 2010 ended financial year net profit was Rs. 424 million.
In April the company concluded a sub division of shares on the basis of 10 shares per every one held.
The Stated Capital represents 224,590,160 issued and fully Paid Ordinary Shares including one Golden Share held by the Treasury which has special rights and 23,000,000 Nonvoting shares.
Wayamba Plantation Ltd. owns 62.276% of voting shares whilst Managing Director Willem L. Bogstra holds 5.47% stake. Lanka Mountcastle Ltd. owns 83.3% of the non-voting stock.
Whilst its 2010 Annual Report is yet to be released, the company in 2009 had 17,126 of which 17,085 were individuals and 16,939 were categorised as holding less than 1,001 shares accounting for 9.68%.
source - www.ft.lk
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