“They are yet to come up with a rights issue and the Indian based construction will buy and subscribe to majority of the rights triggering the Takeovers and Acquisitions code of CSE implemented by the Securities and Exchange Commission of Sri Lanka” source told in the grounds of anonymity.
PC House on 14 March 2013 in a filing to CSE said that on 13 March 2013 company’s board agreed to offer 114,466,667 voting shares by the way of a rights issue to the existing shareholders on the ratio of 1 ordinary voting right valued at Rs.3 per share to every two voting shares held by the shareholders.
Currently PCH has 228,933,334 voting shares representing over Rs.801.26 million stated capital. With the rights Issue Company will further raise over Rs.343.4 million to meet the working capital requirements of the company.
“It is anticipated that the new investor will buy a majority of rights which in turn is nearly 30% stake of the company and later from a Mandatory Offer it would be further increased by another 30% totaling to a 60% stake of PCH” source added.
However when asked whether there is a offer by an investor for 60% stake of PCH, company Chairman S.H.M. Rishan said he will call back to give the details since there is no such announcement made to CSE. "I can only talk about things that are announced to CSE I will give details if it is announced" Rishan added.
Back in August 2010, PC House PLC, which was said to be the first emerging IT conglomerate that was to be listed in Colombo Bourse raised Rs 630 million issuing 57.2 million voting shares at Rs 11 each. Ath the time it was mulling that the funds collected will be utilized to expand internet data centre operations and outsourcing, finance the enhancement of BPO and KPO operations, retire some of the expensive debt capital to increase leverage capacity, expand current branch network of 28 with five additional branches and improve service quality and to streamline working capital operations.
That time in July 2010 company also appointed new directors, Mangala Boyagoda, Sarath Wickramanayake, Modarage Thakshila, Shanthikumar Nadarajah and Kuvera de Zoysa although later Shanthikumar Nadarajah resigned from the board after 2 years on 16th August 2012 and Sarath Wickramanayake resigned from the board on 24 August 2012.
Further Mangala Boyagoda, Modarage Thakshila and Kuvera de Zoysa resigned from the board on 31 August 2012 whilst PC House Chairman S.H.M. Rishan’s wife Sithy Shamila Rishan tendered her resignation on 17th December 2012 according CSE Disclosures by PC House.
Meanwhile latest quarter results of the company as at 31 December 2012 outlines that PCH Group revenue had come down from Rs.2.95 billion year ago to Rs.1.69 billion (down 43%) for a nine months period and net profit had fallen from Rs.158.8 million to Rs.5.6 million (down 96%) and Earnings Per Share had fallen from 69 cents to 2 cents for the same corresponding period.
Company Chairman Rishan as at December 2012 holds nearly a 48.78% of the company with over 111.67 million shares and his wife holds another 6.03% with a 13.8 million shares and PC House mother company,related subsidiaries and associates including PCH House Holdings, PC Pharma, Orient Garments collectively own another 12% of the company. (By Jithendra Antonio)