2 July 2018 10:18 am
Property development and hospitality holding company Ascot Holdings PLC is to raise Rs.632.8 million through a rights issue, subject to shareholder and stock exchange approval, the company announced last Friday.
According to a stock market filing, Ascot Holdings will issue 31.6 million new ordinary shares in the proportion of five new shares for every two ordinary shares held at a price of Rs.20 per share.
Ascot Holdings share closed at Rs.28.90 on Friday. As at March 31, 2018, Ascot Holdings’ consolidated book value per share was Rs.87.16.
The current stated capital of the company is Rs.156.7 million represented by 12.6 million shares.
The company plans to invest Rs.500 million of the rights proceeds in its subsidiary Ascot Developments (Pvt) Ltd. to allow the subsidiary to utilize Rs.250 million to “refurbish by way of addition and alterations to its commercial building situated at Darley Road Colombo 10 and Rs.250 million to settle its balance outstanding loan to Bank of Ceylon Corporate Branch.”
A sum of Rs.100 million of the rights money will also be utilized to buy the minority shareholding held by Fairway Holdings (Pvt) Ltd. and Hemaka Damminda De Alwis in Ascot Developments.
Further Rs.25 million will be utilized to acquire the shares held by Fairway Holdings Ltd. in Ascot Leisure (Pvt) Ltd. in order to facilitate a court settlement in the Commercial High Court of Colombo, pursuant to which the Ascot Holdings would be the 100 percent owner of Ascot Leisure.
Ascot Leisure has obtained a seven-acre land under a 99-year lease for 30-room hotel in Palatupana, Yala.
The company said the balance Rs.7.8 million will be utilized for working capital purposes.
Ascot Holdings’ ownership changed October, last year, with a consortium consisting of foreign and local investors buying a 45 percent stake in the company.
The acquisition was followed by a mandatory offer by Eighth Wonder, a Mauritius-based company and Joseph McVeigh, one of the UK-based individuals of the initial purchase.
As at March 31, 2018, Eighth Wonder and McVeigh held 58.19 percent stake in Ascot Holdings.
Eighth Wonder this June disposed 1.26 million shares or 10 percent of its shareholding in Ascot Holdings to an individual named Piers Morgan for Rs.42.50 per share, a stock exchange filing said.