Keells Food Products to acquire factory in Pannala

Keells Food Products PLC is to purchase D & W Foods Limited at Makandura industrial estate at Pannala for Rs 700 million.

A special extraordinary general meeting will be conveyed to seek shareholder approval for this.

The company is also to undertake a right issue of two ordinary shares for every one, ordinary share held at Rs 60 per share.

The total number of shares to be issued is Rs 70 million ordinary shares.

The directors of the company have resolved that the price of Rs 60 per share is fair and reasonable to the company and all existing share holders.

The current shares in issue are 8.5 million and the current stated capital is over Rs 274 million.

Accordingly number of shares in issue post rights will be twenty five million five hundred thousand.

The proceeds of the right issue amounting to Rs. 1.2 billion will be utilized to purchase an effect improvement to the new production facility at Pannala.