21 August 2017 10:05 am
Ceylon Tea Brokers PLC (CTBL) announced that it is hoping to raise Rs. 205 million through a rights issue to develop a state-of-the-art tea warehouse complex, following a board decision last week. The company said that it is hoping to reduce operating costs and time through the new infrastructure.
CTBL this May purchased the lease hold rights to a land in Muthurajawela for 39 years from Lanka Commodity Brokers Limited subsidiary Logicare (Pvt) Ltd for Rs. 233 million to construct the warehouse.
Through the proposed rights issue, subject to regulatory and shareholder approvals, CTBL will issue 68.4 million shares at a proportion of three new shares for five shares currently held by shareholders.
The firm currently has Rs.128 million in stated capital, represented by 114 million shares.
The new shares will be issued for a consideration of Rs. 3 per share. CTBL’s shares were trading at Rs.4.50 per share at end of trading last Friday, down 6.25 percent.
CTBL’s net asset value per share was Rs. 2.15 at the end of the first quarter ended June 30, 2017, up from Rs. 2.09 at the start of the financial year. CTBL made a Rs. 27.8 million net profit for its first quarter, up from Rs. 2.36 million year-on-year (YoY).
Revenue increased 92.53 percent YoY to Rs. 156.11 million. Tea prices have rebounded compared to the same period last year.
As at June 30, 2017, Capital Alliance Holdings Limited held 81.36 percent of shares in CTBL, while K. E. H. De Alwis held 5.4 percent of the firm’s shares.
CTBL had 14.94 percent in public h