Sterling Investments Limited is setting to raise around J$450 million by way of a renounceable rights issue by April this year. The opening date of the issue will be March 18, with closure set for April 8.
Before the issue, the directors are planning to get approval for a stock split which IC Insider understands is likely to be 10 new shares for each one now existing. This means that the right issue price should be under $13.40, the price that the stock has traded at recently, assuming the split takes effect at the above ratio.
The company has called an extraordinary general meeting of shareholders for February 21, 2015 in St. Lucia to consider increasing the share capital, approving the stock split, authorizing the Directors to implement a Rights Issue and to carry out all steps and documents needed to give effect to the stock split and to implement the Right Issue.
Sterling is primarily involved in investing funds in mostly debt capital denominated in foreign currencies. At September last year, profit from operations totalled $48.36 million or 16 cents per share and total comprehensive income ended at $62.8 million. For the September quarter, profit amounted of $9.9 million down from $12.57 million in 2013 with negative total comprehensive income of $2.3 million. At end the end of the period equity capital amounted $544 million. NCB Capital Markets are the brokers to the rights issue.
The Directors intend to consider the payment of a final dividend at the Directors meeting that is scheduled on February 21, 2015. The company paid a dividend of J$1.35 in June last year.
$450m rights issue for Sterling
February 16, 2015 by
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