The Board of Directors of Lanka Walltiles PLC (LWL) has officially resolved to amalgamate its wholly-owned subsidiary, Vallibel Plantation Management Limited, into the parent entity immediately following the completion of a proposed Rights Issue.

In official disclosures submitted to the Colombo Stock Exchange (CSE) by corporate secretaries P W Corporate Secretarial (Pvt) Ltd, the company confirmed that Lanka Walltiles PLC will serve as the surviving Amalgamated Company upon completion of the transaction. The proposed amalgamation remains subject to Lanka Walltiles PLC satisfying the statutory solvency test immediately after the merger becomes effective.

Prior to executing the amalgamation, Lanka Walltiles PLC plans to conduct a major capital raise through a Rights Issue of 128,470,588 Ordinary Voting Shares at an issue price of Rs. 39/- per share, raising a total of Rs. 5,010,352,932/-.

Key details of the Rights Issue include:

• Entitlement Ratio: 8 new Ordinary Voting Shares for every 17 Ordinary Voting Shares held.
• Existing Shareholding Base: 273,000,000 ordinary voting shares.
• Current Stated Capital: LKR 787,765,000.00.
• Regulatory Approvals: Subject to CSE listing approval in principle and shareholder approval at an Extraordinary General Meeting (EGM) to be convened in due course.

The capital injection is structured to improve the company's financial health ahead of the subsidiary consolidation. Proceeds from the Rights Issue will be allocated to partially settle existing bank borrowings and overdue inter-company trade and other payables (all being interest-bearing dues), thereby substantially strengthening Lanka Walltiles PLC’s overall financial position and capital structure.