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Lankem Tea and Rubber Plantations managed Kotagala Plantations PLC (KOTA) is raising over Rs. 800 million in a Rights Issue. The company in a filing to Colombo Stock Exchange (CSE) disclosed that 80 million Ordinary Voting Shares will be issued at Rs.10 per share in the proportion of Two New Ordinary Voting Shares for every One Share held by existing shareholders of the company.
The filing further added that the money will be raised to settle outstanding statutory liabilities and to meet working capital requirements of the company. Kotagala Plantations current share capital stands at Rs. 680 million represented by 40 million
Ordinary Voting shares.
The company further notes that the rights issue is subject to exchange approval and shareholders’ approval at
an Extraordinary General Meeting.