The special resolution proposed by the directors of Distilleries Company of Sri Lanka PLC (DCSL) to make Melstacorp Limited the holding company of the group was overwhelmingly approved by the shareholders of DCSL at an Extraordinary General Meeting (EGM) held yesterday.
The resolution was approved with 99.9987 percent voting in favor and 0.0013 percent voting against in the poll held.
The EGM was convened on the orders of the Commercial High Court of Colombo based on an application made by DCSL to restructure the group under the provisions of Chapter ‘X’ of the Companies Act No 7 of 2007.
According to the announcements made by the company to the Colombo Stock Exchange, DCSL share will continue to trade until the close of trading on September 30, 2016.
The shareholders who hold shares of the company on that day will receive four (4) shares of Melstacorp Limited in place of each DCSL share held. Once the swap is completed Melstacorp will become the holding company of DCSL PLC. Shares of Melstacorp Limited is expected to be listed and likely to commence trading in the month of October. DCSL PLC has a market capitalization of Rs.80 billion.
Melstacorp Limited is also the holding company of Lanka Bell Limited, Continental Insurance Lanka Ltd, Melsta Regal Finance Limited, Balangoda Plantations PLC and Browns Beach Hotels PLC.
It also own significant percentages of shares in Aitken Spence PLC and Madulsima Plantations PLC. Harry Jayawardena is the Chairman of both DCSL PLC and of Melstacorp Limited, while Amitha Gooneratne functions as the Managing Director of the company.