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13 Jun 2014
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Hayleys MGT proposes Rs.526 Mn rights issue

Knit Fabric Manufacturer, Hayleys MGT Knitting Mills PLC announced today that it is planning to raise Rs.526 million through a rights issue to retire debts and strengthen its financial position, subject to Colombo Stock Exchange and shareholder approval.

To this end, the company plans to issue 55.4 million new ordinary shares at Rs.9.50 per share in the proportion of 4 shares for every 11 existing ordinary shares, the company said in a stock exchange filing. The rights issue comes in the wake of Hayleys MGT Knitting Mills contracting its net loss 62 percent year-on-year to RS.183 million during the financial year ended March 31, 2014. The company had interest bearing borrowings of Rs.1.98 billion under the current liabilities as at end of March 321, 2014 against Rs.1.55 billion in the previous year. The current stated capital of the entity is Rs.1.4 billion represented by 152.3 million ordinary shares.

Hayleys MGT raised Rs.914 million through a 2:1 rights issue May, 2012.

The company said the proceeds of the rights issue would be used to strengthen the balance sheet, invest in equipment to manufacture higher value fabric, invest on energy saving initiatives and upgrade its Enterprise Resource Planning (ERP) System.

Hayleys MGT Knitting Mills

Established in 1993, Hayleys MGT Knitting Mills PLC is the pioneer in textiles manufacturing in Sri Lanka. We provide end to end solutions from design to manufacturing of fabric made out of natural and synthetic fibers. Company also has the capability of in-house printing with 16-colour printing machines, fabric brushing machines and sueding machines. Hayleys PLC, our parent company, is the oldest conglomerate in Sri Lanka with interests in diverse business operations. Hayleys MGT Knitting Mills shares are listed on the Colombo Stock Exchange (symbol: MGT.N0000). For more information, go to www.hayleysmgt.com.

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