RIL Property PLC (RIL) yesterday said it has received acceptance for its mandatory offer on United Motors PLC (UML), which would result in RIL acquiring 51 percent or more of the voting shares of UML.
RIL acquired a 30 percent stake in UML from its majority shareholder M.A. Yaseen this November for Rs.2.4 billion triggering a mandatory offer requirement.
Yaseen continues to hold a 31.2 percent more stake in UML. He also owns a 16 percent stake directly in RIL.
At the time of the acquisition of UML shares by RIL, Yaseen had given an undertaking not to accept the mandatory offer.
But he said he would sell down for RIL to hold 51 percent in UML in the event RIL fails to acquire an adequate stake from the UML minority shareholders to gain the control of the company.
Yesterday’s disclosure by RIL said the details pertaining to the acceptance of the mandatory offer would be disclosed to the market shortly.
Related parties to Yaseen hold a further 17 percent stake in UML.
Stocks hit 3-wk closing high in holiday-thinned trading
REUTERS: Sri Lankan shares touched a near three-week closing high yesterday as investors waited for clues from the Central Bank’s monetary policy review later in the week, with trading muted by the holidays after Christmas.
Sri Lanka’s Central Bank is expected to keep its key interest rates unchanged this week, a Reuters poll showed, as policymakers focus on supporting the slowing South Asian economy while remaining vigilant to still high inflationary pressures.
The Colombo Stock Index ended 0.14 percent firmer at 6,359.06, its highest since December 8.
“Trading blue chip counters moved up slightly helping the index to end positive but the market is very dull as most of the brokers and investors are on holiday,” said First Capital Holdings Head of Research Dimantha Mathew. Shares in Peoples Leasing PLC rose 0.6 percent, while Overseas Realty PLC ended 2.9 percent higher and Hemas Holdings PLC gained 0.8 percent.
Turnover stood at Rs.263.3 million, just above a quarter of this year’s daily average of Rs.920.5 million.
Foreign investors sold Rs.130.1 million net worth of shares yesterday, but they have bought Rs.18.2 billion net worth equities so far this year.