LVL Energy Fund proposes Rs.507mn rights issue to settle debt

LVL Energy Fund PLC has proposed a rights issue to raise Rs.507.1 million to settle its outstanding debt, the company said in a disclosure to the Colombo Stock Exchange (CSE). The board of directors has approved the issuance of 67.6 million new ordinary voting shares, on the basis of three new shares for every 31 shares held, at an issue price of Rs.7.50 per share.

If fully subscribed, the rights issue will raise Rs.507,145,455, with proceeds earmarked exclusively to pay off the company’s outstanding obligations that have already fallen due, the disclosure said.

The company’s current stated capital stands at Rs.3.37 billion.

The proposed rights issue is subject to obtaining the in-principle approval from the CSE for the issue and listing of the shares, as well as the shareholder approval at an Extraordinary General Meeting, the date of which will be announced later.