October 16, Colombo (LNW): Colombo Dockyard PLC has confirmed its intention to move forward with its previously announced rights issue valued at Rs. 12.93 billion, though the company has introduced key revisions to the transaction’s structure ahead of seeking shareholder approval.
In a disclosure made to the Colombo Stock Exchange, the shipbuilding and repair company clarified that its principal shareholder, Japan-based Onomichi Dockyard Company Limited, will no longer assign its rights entitlement to India’s Mazagon Dock Shipbuilders Limited, contrary to the original proposal.
Instead, Onomichi has opted to abstain from subscribing to its portion of the rights issue. As a result, the voting shares arising from that entitlement will now be directly allocated to Mazagon Dock Shipbuilders, provided that shareholders pass a special resolution approving the arrangement.
Colombo Dockyard further noted that these specific shares will be set aside solely for Mazagon and will not be redistributed among other shareholders who apply for excess shares.
The company’s board gave its formal approval for this revised structure on October 01, indicating a strategic shift in the capital-raising process.
Originally unveiled in July 2025, the rights issue was designed to offer approximately 323.4 million new ordinary voting shares at a price of Rs. 40 per share. The proposed share offering was structured on a basis of nine new shares for every two shares currently held, with the primary aim of bolstering the company’s working capital and addressing liquidity constraints.
The initiative faced a temporary setback in August when it was postponed due to what the company described as “unavoidable circumstances.” However, with the revised terms now in place, Colombo Dockyard appears prepared to proceed, contingent on shareholder endorsement.
