ODEL PLC today announced a significant change of ownership, with Parkson Retail Asia Limited (PRAL.SI) agreeing to purchase a 41.82 per cent stake in the company for Rs 1.424 billion.
An announcement to the Colombo Stock Exchange said the transaction would be followed by a mandatory offer to minority shareholders and a 1 for 1 Rights Issue that will raise Rs 2.899 billion in capital for expansion of the 22 year old fashion retail brand.
Parkson has entered in to a Share Sale and Purchase Agreement with the controlling shareholders of ODEL, -- the company’s founder and CEO Otara Gunewardene and her brothers Ajit and Ruchi Gunewardene -- to acquire 60,625,000 shares of ODEL, representing 27.88 per cent, 13.6 per cent and 0.34 per cent respectively of the issued share capital of the company at Rs 23.50 per share, the announcement said.
Following the acquisition, Ms Gunewardene will retain a 27.88 per cent stake in ODEL PLC and will continue to be the company’s CEO, a spokesman for ODEL disclosed.
The directors of ODEL PLC have resolved, subject to regulatory and shareholder approval, to undertake a Rights Issue of One (1) ordinary share for every one (1) ordinary share held at a price of Rs 20/- per share after the completion of the mandatory offer. The total number of shares to be issued is 144,950,000 ordinary shares, doubling the number of shares in issue post rights to 289,900,000 ordinary shares. Parkson and Ms Gunewardene, Ajit Gunewardene and Ruchi Gunewardene have committed to take up their full entitlement of shares in the Rights Issue.
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