Lankem’s Agarapatana Plantations plans IPO on CSE

• Calls EGM on January 25 to obtain shareholder approval

Lankem Developments PLC (LDL) plans to list the shares of its subsidiary Agarapatana Plantations Ltd (APL) on the Colombo Stock Exchange (CSE) by way of an initial public offering (IPO).
Accordingly, LDL has called for an Extraordinary General Meeting (EGM) on 25th of this month to obtain the approval of the shareholders to list the ordinary shares of APL in an IPO on the CSE subject to the approval of the CSE and the Securities and Exchange Commission. At the end of 2021/2022 FY, LDL held 67 percent of shares in Agarapatana Plantations, down from 72 percent held a year ago following the debt restructuring exercise where Rs.459 million worth of related party debts were converted to equity to strengthen the capital structure of the company.   

However, the company’s current liabilities still exceeded its current assets by Rs. 1,481.8 million at the end of 2021/2022 FY. Meanwhile, APL recently acquired the entire stake in Waverly Power ( Pvt) Ltd for over Rs.430 million from Lankem Group. Earlier, Waverly Power (Pvt) Ltd was a subsidiary of LDL. In 2021/2022, Agarapatana Plantations reported an after-tax profit of Rs. 27.8 million on a turnover of Rs. 4.4 billion. APL has estates in the Western Planting District and Haputale region in the Uva Eastern Planting District.