Cargo Development Co. to raise Rs.459mn via rights issue

Cargo Development Company PLC, an entity involved in development and rental of properties, yesterday disclosed plans to raise Rs.459 million via a rights issue.
The company plans to issue 10.2 million new shares in the proportion of one share for every one share held at Rs.45 per share.

The stated capital of the company as at date is Rs.119 million, represented by 10.2 million shares. 

As at December 31, 2018, the company’s net asset value was Rs.108.63. Cargo Development Company share yesterday closed at Rs.51.50, down Rs.2.50 or 4.63 percent. 
The company said the proceeds of the rights issue will be used to partially finance the renovation project of the office building situated at 41, Janadhipathi Mawatha, Colombo 1, which is estimated to cost Rs.575.4 million.

The rights issue is subject to the Colombo Stock Exchange approving in principle the issue and the listing of shares and obtaining shareholder approval at an Extraordinary General Meeting. 

Lancaster Holdings Limited holds 30.13 percent of the issued shares of the company while Renuka Properties Limited has a 22.12 percent stake. As the third largest shareholder, Associated Electrical Corporation Limited has a 10.99 percent stake in the company.