Ceylon Land and Equity PLC said its Board has approved an investment of Rs. 1.7 billion to take up its entitlement in the Rights Issue of Shaw Wallace and Hedges Ltd., an unlisted company.
Under the transaction, Ceylon Land and Equity will subscribe to 86.32 million voting shares at a price of Rs. 17 per share, amounting to a consideration of Rs. 1.47 billion. In addition, the company will invest Rs. 236.5 million to acquire 21.5 million non-voting shares at Rs. 11 per share.
The company currently holds 172.64 million voting shares and 43 million non-voting shares in Shaw Wallace and Hedges. Following the proposed investment, its shareholding will increase to 49.2% of the issued ordinary shares of the company.
This holding will comprise 43.6% of the voting shares and 100% of the non-voting shares of Shaw Wallace and Hedges.
Ceylon Land and Equity said the investment will be funded through a combination of its own funds, temporary bank financing, and group borrowings. Major shareholders of Ceylon Land and Equity are Galle Face Properties (34.63%), Almas Holdings (24.3%), and Renuka Enterprises (11.7%).
Ceylon Land’s share ended down Rs. 0.10 at Rs. 12 yesterday on 567,854 shares traded.
As of end-September 2025, the company reported net assets of Rs. 13.44 per share with public shareholding at 49.96%.
It did not report any borrowings, with group-level retained earnings at Rs. 2 billion on a Rs. 4.1 billion balance sheet.