Kerner Haus seeks Rs. 420mn via rights for real estate acquisitions

Kerner Haus Global Solutions PLC disclosed it plans to raise up to Rs. 420.1 million through a rights issue as the listed company seeks fresh capital to strengthen its balance sheet, improve liquidity and expand its real estate portfolio.

The company’s board has approved the issue of up to 10.5 million new ordinary voting shares at Rs. 40 each, offering shareholders one new share for every four shares held as at the entitlement date. The proposed issue is expected to increase the company’s stated capital and provide funding for a series of property-related investments.

Based on the maximum number of shares proposed, the company could raise approximately Rs. 420.1 million before expenses. The rights issue represents a 25 percent expansion of the existing share base, with the company currently having 42.01 million ordinary voting shares in issue.

Kerner Haus said the proceeds would be deployed across three key areas: strengthening its balance sheet and liquidity position, acquiring strategic real estate assets and securing properties on a leasehold basis.

The board has also stated that the issue price of Rs. 40 per share is fair and reasonable to both the company and existing shareholders.

The proposed rights issue remains subject to approval in principle from the Colombo Stock Exchange for the issue and listing of the new shares, as well as shareholder approval at a general meeting.