Madulsima Plantations in Rs.1.4bn rights issue to settle debts

20 May 2015 03:59 am - 0 - {{hitsCtrl.values.hits}}

A A A

Madulsima Plantations PLC will be raising Rs.1.38 billion in a rights issue in the near future, to settle company’s outstanding debts.
Five new ordinary shares will be issued for each currently held ordinary share, for a total of 145 million shares, at a consideration of Rs.9.50 per share. The share closed at Rs.9.90 yesterday. The current stated capital of the company is Rs.290 million.
The funds would be used to settle a debt of Rs.1.32 billion to the company’s two largest shareholders Melstacorp Limited and Stassen Exports (Pvt) Ltd. which own 33.17 percent and 31.20 percent stakes respectively, and to partially reduce an overdraft facility obtained from Hatton National Bank PLC.
According to the interim financial statements for the quarter ended March 2015, the company owed Rs.1.46 billion to related parties, which increased from Rs.1.29 billion for the quarter ended December 2014.
The bank overdraft increased to Rs.364.34 million from Rs.326.69 million. It had additional interest bearing loans and borrowings worth Rs.73.33 million, an increase from Rs.1.6 million.
The company had retained losses worth Rs.2.19 billion for the quarter. For the financial year ended December 31, 2014, the net loss was Rs.277.73 million.
Madulsima Plantations deals with tea and firewood. The tea industry had been beset by macroeconomic troubles in the international market, erratic weather as well as rising wages in the past year.
A recent outlook put the industry at a negative outlook in the short term, with moderate gains as the year goes on.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Madulsima Plantations in Rs.1.4bn rights issue to settle debts

Comments - 0

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

23 year old youth ends up having his testicles removed

Former MP Palitha Thewarapperuma dies from electrocution

Confusion remains if April 15 is a bank holiday

A US “Kaputa”, a Lankan “Nariya” and a Presidential “Feast”

SL on alert on possible genocide allegations by Canada

Belgian traveller scammed in Kalutara

MIRROR CRICKET

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

Chamodi, Dewmi spins Sri Lanka U19 Women to big win

Amir, Wasim return to Pakistan national team

TODAY'S HEADLINES

100 Police personnel trained to target criminals operating on motorbikes

Catholic Church receives full report

Complaint lodged over Piumi Hansamali’s possession of Gota’s Range Rover

We are struggling with severe shortage of staff – Excise Chief

Mendis, Mathews move up in ICC Test Rankings

Security raised for Champions League ties after threat

SLA target four events at Paris Olympic Games

Chamodi, Dewmi spins Sri Lanka U19 Women to big win