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Friday, June 10, 2011

Sri Lanka Vallibel One seeks cash for hotel

June 09, 2011 (LBO) - Vallible One, an investment holding company connected to entrepreneur Dhammika Perera is seeking 532.8 million rupees for a 300 room hotel through an initial public offer.

The company is offering 31.2 million shares at 25 rupees. The money will be used for a 5.6 billion rupees (50 million US dollar) hotel to be built in Negombo in Sri Lanka's western coast, north of the capital Colombo.

Earlier in the year the firm raised 4.9 billion rupees through a private placement, also at 25 rupees. Out of this 2.46 billion rupees will be invested in the hotel company, Greener Waters Ltd, the firm said in a prospectus.

The balance funds would come from debt. The firm is planning to complete the hotel by early 2014. The firm is also planning investments in the power sector.

The private placement had attracted 724 shareholders.

Before the public issue, Dhammika Perera held 64.3 percent of the firm's shares, and Nimal Perera his business associate held 17.26 percent through related parties.

After the public issue, Dhammika Perera would hold 63.08 percent of the firm, Vallibel Investments 8.46 percent, Vallibel Leisure 8.46 percent and other shareholders 20 percent.

Vallibel One now gets revenues from several operating businesses. Royal Ceramics, a tile and sanitary ware maker in which there is a 51 percent stake and LB Finance a finance company where it also holds a 51 percent stake.

The firm has a 15 percent stake in listed Sampath Bank where revenues are not consolidated.

In the seven months to December 2010 the firm reported consolidated revenues of 2.08 billion rupees and net profits of 161 million rupees, giving earnings of 79 cents per share based on the share capital at the time.

After the IPO, which will increase shares by 21 million, the firm would have 1,086,559,353 shares.

The firm had consolidated gross assets of 50.4 billion rupees and liabilities of 25.1 billion including the assets and liabilities of LB Finance, which is highly leveraged as a financial firm.

The assets also included 11.2 billion rupees in goodwill, making up the difference in market value and net asset values at which listed company shares were transferred to Vallibel One.

Consolidated net assets were 21.8 billion rupees.

source - www.lbo.lk