Ceylon Land & Equity to raise Rs. 4.3 b via 2-for-1 Rights

CEYLON Land & Equity PLC will issue 614,156,734 new ordinary voting shares at a price of Rs. 7 per share through a Rights Issue, subject to shareholder approval.

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The decision was taken by the Board of Directors at a meeting held on 31 January. The Rights Issue will be carried out on the basis of two new ordinary voting shares for every one existing ordinary voting share held.

Based on the issue price, the company is expected to raise approximately Rs.4.3 billion through the transaction.

The Board has stated that, in its opinion, the consideration for which the shares are proposed to be issued is fair and reasonable to the company and its existing shareholders.

Proceeds from the Rights Issue will be used to settle short-term bank loans, repay short-term inter-company borrowings, and fund investments in property development and portfolio management.