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Walker & Greig goes for Rs. 4 b Rights Issue
Once a top engineering firm but now more or less an investment holding
company Walker and Greig, has announced a mega Rs. 4 billion Rights
Issue.
The proposed issue will be on the basis of 24 new shares for one
held at Rs. 10 each. Its issued share capital is 5.7 million while
over 90% is held by foreign investors.
Its objective is to raise capital for various investment opportunities
that meet with company’s objectives and risk control thresholds.
Walker & Greig Director Gregory Scott Newsome said that some
of the Company’s shareholders have already committed to take
up over Rs. 3 billion of the Rights Issue and this confirmed their
long term commitment.
The Company was incorporated in Sri Lanka almost a century ago in
1910 and was listed in 1970. Recently it was restructured as an
investment holding company with a mission to invest in opportunities
that maximized shareholder returns.
“Walker and Greig has identified several investment opportunities
whereby the entire fund amounts can be deployed. Furthermore, if
these investment opportunities are realized, the Company is anticipating
a direct realization of profit with a continued growth rate,”
Mr. Newsome said.
Last week the Company’s share traded between a high of Rs.
76.75 and a low of Rs. 72, before closing down by Rs. 3 to Rs. 73.25.
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