Kalamazoo Systems announces Rs.1.5bn rights issue

Kalamazoo Systems PLC yesterday said it was planning to raise Rs.1.56 billion through a rights issue, subject to shareholder and the Colombo Stock Exchange approval. 

To this end, the company plans to issue three million new shares at the proportion of 60 shares for every one share held at a price of Rs.520 per share.

The current stated capital of the company stands at Rs.500,000 and the existing number of shares at 50,000.

The company expects to utilize the rights issue proceeds to “make an equity investment in Renuka Development Limited to finance the working capital and future investments.”

Renuka Holdings PLC this July acquired 68.65 percent of Kalamazoo Systems PLC from high-net-worth investor Nimal Perera in a Rs.490 million deal.

Following the obligatory mandatory offer, Renuka Holdings said it held just over 70 percent of the issued shares of Kalamazoo PLC.

In the meantime, Kalamazoo yesterday announced a new director board headed by Shamindra Rajiyah as its Executive Chairman.