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| Sunday, 9 October 2005 |
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Business |  |
| News Business Features Editorial
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Global Lanka
share issue opens
by Elmo Leonard The Global Lanka public share issue (with emphasis on tourism and housing) opened Tuesday and will close on December 31. The issue will be kept open at least up to October 14 thereafter, the directors hold the right to conclude the issue in the event of full subscription. The issue is called by Global Investments Lanka Ltd and its subsidiaries, Global Lanka Hotels (Pvt.) Ltd, Global Investments Lanka Travels and Tours (Pvt) Ltd and Global Lanka Towers Management (Pvt) Ltd. In the balance is 27,500,000 of its ordinary shares and an equal number of non-voting ordinary shares at Rs 10 each. An investor will be issued with an equal number of voting and non-voting shares. Answering media queries, director Ajith Nivard Cabraal said that his company was seeking an internationally accepted medium to keep control of the company for a time, under those who conceptualised it. The non-voting shares will also be entitled to dividends or bonus issues. The company hopes to raise Rs 550 million ($5.5 million) to be utilised in part to finance the construction of Phase II of Global Towers, Marine Drive, Colombo 6. Also for the construction of other hotels in Ambalangoda, Nuwara Eliya and Vavuniya for which land had been purchased. In addition, for construction "in Yala, Polonnaruwa and other tourist sites," chairman Phylix Selvadurai said. In the event of the progression of peace in the north and east, the company has projections of acquiring land and constructing "star" class hotels in Trincomalee, Batticaloa and Jaffna. Answering queries as to why 4-star hotels are favoured by the Global group, the directors said that there is a market for that segment. Selvadurai said his company is positively bent in its projections. The managers and registrars to the issue are Capital Reach Holdings, while the bankers are Hatton National Bank and Commercial Bank and Legal Advisors are Varners Lanka Law Office. An applicant would entail a minimum of 2,500 shares or multiples of 1,000 shares with an equivalent number of shares being applied for in each category, subject to a maximum of 5,000,000 shares being applied for in each category, director M. Shanthikumar said. The company was incorporated as a private limited liability company in June 1994 and was converted to a public company on September 19, 05. With an agreement entered into with the BOI, the company has been accorded tax exemption for five years. On completion of the tax exemption period, income tax will be calculated at the rate of 10 percent and thereafter at 20 percent. The directors reserve the right to refuse any application or to accept any application in part only, without assigning any reason. The company has posted a profit of "Rs 214 million which is a 25 percent profit on turnover and 33 percent on investment", according to director Ravi Santiagopillai. The directors said that Phase I was completed without bank borrowing either locally or abroad.In the first half of the year the Global Towers Hotel, in Colombo, enjoyed an occupancy rate of 68 percent and in July and August the rate was 73 percent. Construction on Phase II of Global Towers which is due to start
shortly,is expected to cost Rs 1.6 billion. The group is now poised to
launch into a sustained period of growth, Selvadurai said. The future
investment in the company in the next 2-3 years would exceed Rs. 3 billion,
Selvadurai said. |
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