Hemas Holdings Plc announced that it had successfully completed its Rights Issue raising Rs. 4.1 billion of new capital to finance its expansion plans in healthcare and personal care.
The capital raised is one of the most significant on the Colombo Stock Exchange in recent years, with the majority of capital being raised from world leading institutional investors.
Group CEO Steven Enderby said: “We are working hard on achieving our vision of being the best at enriching lives through our activities in healthcare, personal care, leisure and transportation.
We have made a number of key strategic moves recently through the acquisition of JL Morison which has enhanced our presence in pharmaceuticals, the development of our personal care business in Bangladesh and the opening of our third hospital, while divesting our shares in power. It is important for us to have the capital base to continue this growth trajectory while becoming increasingly focused on our strong presence in healthcare and personal care. We thank our shareholders for the confidence placed in our business.”
As disclosed previously, following the announcement of the Rights Issue there were strong expressions of interest from reputed international institutional investors and domestic investors who wished to become shareholders, or to increase their existing shareholding in Hemas Holdings Plc (Hemas).
In order to accommodate this demand the major shareholders of Hemas, the Esufally family, decided not to subscribe for their rights in order to enable these parties to become shareholders or increase their shareholding. As a result of the Rights Issue being fully subscribed to, the shareholding of the major shareholder (Esufally family) reduced from 71.26% to 64.14%. This has further broad-based the ownership of the company. The family remains fully committed to the ongoing success of Hemas and considers this Rights Issue as an important step in expanding the capital base of the business and providing the funds for the exciting growth plans of Hemas.
Hemas Holdings was advised in this capital raising by CT CLSA Capital Ltd.
The Hemas Group is one of the leading conglomerates in Sri Lanka with a focus on four key sectors, namely Fast Moving Consumer Goods, Healthcare, Transportation and Leisure.
Courtesy: Daily Financial Times 14 May 2015