ECONOMYNEXT – Odel Plc, a unit of Softlogic Holdings Plc, said it is seeking to 3.3 billion rupees from shareholders through a rights issue.
“The purpose of this rights issue is to enable the Company to settle/reduce the existing borrowings,” Chairman Ashok Pathirage said in a stock exchange filing.
Odels plans to sell 272,129,431 share at 12.15 rupees each.
These will be issued in the proportion of one (1) new ordinary share for every one (1) existing ordinary share held by shareholders in the Register of Shareholders as at end of trading on the Date of Entitlement.
An Odel share was trading at 14.00 rupees mid-day Monday, marginally down from its previous day’s close of 14.20.
The current stated capital of the company is 2,795.513,620 rupees, the statement said.
The rights issue is subject to approval of the Colombo Stock Exchange and shareholders.
In November 2023, Pathirage told shareholders Softlogic was looking to sell down assets and cut debt.
The group has decided to shed unproductive assets, review the internal operating processes and make some painful decisions to enhance liquidity and strengthen the financial standing of the group.
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In September it bought Footwear Retailer Ltd, which has the franchise and a factory to make Bata branded shoes in the island, for 293 million rupees.
Softlogic, which has interests in retail, leisure, healthcare, and financial services, last week announced it was building a hospital in Sri Lanka’s Port City. (Colombo/Jan8/2024)