Hay­leys to ac­quire Singer Sri Lanka for Rs.12.5bn

Daily Mirror (Sri Lanka) - - PRO­VIN­CIAL -

Di­ver­si­fied con­glom­er­ate Hay­leys PLC, con­tin­u­ing with its buy­ing spree, yes­ter­day struck a mega deal to ac­quire a 71 per­cent stake in lead­ing con­sumer durables re­tailer Singer (Sri Lanka) PLC (SSL) in a whop­ping Rs.12.5 bil­lion deal.

The Hay­leys group, con­trolled by busi­ness mag­nate Dham­mika Per­era, last month ac­quired Sri Lanka Ship­ping Com­pany Lim­ited, in its quest to be­come Sri Lanka’s largest ship­ping and mar­itime com­pany, for Rs.4.9 bil­lion.

Hay­leys yes­ter­day said it en­tered into an agree­ment with Re­tail Hold­ings (Sri Lanka) B.V. (RHSL) to pur­chase its 231.8 mil­lion shares con­sti­tut­ing 61.73 per­cent in SSL by it­self and its nom­i­nee at a price of Rs.47 per share. Hay­leys has also en­tered into a fur­ther agree­ment to pur­chase, ei­ther by it­self or through its nom­i­nee, the bal­ance share­hold­ing of 35.5 mil­lion shares con­sti­tut­ing of 9.47 per­cent held by RHSL in SSL, within a pe­riod of 12 to 15 months from the date of the ini­tial trans­ac­tion, at the op­tion of RHSL at a price of Rs.47 a share.

SSL’S net as­set value per share as at June 30, 2017 stood at Rs.20.22.

SSL in a stock ex­change fil­ing said fol­low­ing the trans­ac­tion, Hay­leys will be­come its con­trol­ling share­holder and will be obliged to make a manda­tory of­fer to the re­main­ing SSL share­hold­ers un­der the Com­pany Takeovers and Merg­ers Code of the Se­cu­ri­ties and Ex­change Com­mis­sion.

The trad­ing of shares of SSL and Hay­leys on the Colombo bourse was halted yes­ter­day pend­ing an­nounce­ments from the two com­pa­nies.

Amid takeover spec­u­la­tions, SSL shares on Tues­day soared by Rs.8.10 to close at Rs.52.50.

RHSL is a sub­sidiary of Hong Kong-based Singer Asia, whose par­ent is Re­tial Hold­ings N.V. Apart from Sri Lanka, Singer Asia op­er­ates sub­sidiaries in Bangladesh and In­dia. It had been spec­u­lated for some time that Re­tail Hold­ings N.V. was look­ing to di­vest its Asian op­er­a­tions.

Chair­man Mo­han Pan­dithage

Co-chair­man Dham­mika Per­era

Newspapers in English

Newspapers from Sri Lanka

© PressReader. All rights reserved.