The Softlogic Group successfully raised a billion rupees through a private placement that concluded on Friday, market sources who did not want to be named told The Sunday Leader.
The placement comprised some 14 million shares at Rs. 72 a share, and consisted 20% of the Group s equity after the placement. The company will be going for an initial public offering (i.p.o.) in March of next year, because, as per Securities and Exchange Commission laws, after a private placement, a corporate could go for an i.p.o. only after the lapse of a year.
Softlogic s state of the art new hospital currently being built at Norris Canal Road, Colombo, is also expected to be on stream by March of next year.
It s learnt that the Softlogic Group raised Rs. 800 million from four parties comprising a local corporate, a local institution, a foreign fund and a local high networth individual, and the balance Rs. 200 million from others, in this private placement.
The Softlogic Group is a multi-billion rupee trading and services company, whose interests span holding the Nokia hand phone agency, hospital services, Panasonic agency, Dell Computers agency, Daihatsu agency and real estate.
Their commercial interests also have a direct global outreach, with the company active in their agency business in countries such as Pakistan.
The Group carries a Rs. 3.5 billion debt portfolio in their books, of which. Rs. 1.5 billion comprises debt acquired in the construction of the hospital at Norris Canal Road, and the balance being working capital debt, related to their trading activities.
The Rs. one billion raised form the private placement will be used to settle part of the hospital investment debt, the sources said.
When The Sunday Leader contacted Softlogic Group Chairman/Managing Director Ashok Pathirage for details of this placement, he said to wait till this week.
Meanwhile, in other developments on Friday, the Hayleys Group acquired a 51% stake in Hotel Services, the holding company of Continental Hotel, Colombo (formerly Hotel Ceylon Inter-Continental) for Rs. 1.8 billion. This stake was sold by businessman Nahil Wijesuriya
Hayleys, together with Jetwing Hotels, also run a number of other hotels in the island.
Hayleys single biggest shareholder is business magnate cum B.o.I. Chairman Dhammika Perera who also independently operates a number of hotels in the South, Central and in the North Central parts of the country.
Perera has a 22% stake in the Hayleys Group.