Laxapana Batteries’ rights issue to pay off loan

Laxapana Batteries PLC, one of the oldest Sri Lankan torch battery manufacturers, said on Wednesday that it plans to offer 18 million ordinary shares in a rights issue aimed at raising funds to settle debts.

The proceeds of the issue will be utilized to repay advances obtained from Darley Butler & Co. Ltd. (DBCL) to fund working capital requirements and to settle the loan outstandings to DBSL. In a filing with the Colombo Stock Exchange, the company said the Board of Directors decided at a meeting yesterday that the shares would be issued at Rs 5 per share on the 2-for-1 share basis, subject to the approval of shareholders at an Extraordinary General Meeting.