Janashakthi PLC, the investment arm of Schaffter family, yesterday said its director board gave approval to amalgamate with its subsidiary, Dunamis Capital PLC, subject to shareholder approval.
As at June 30, 2019, Janashakthi owned 98.088 percent of Dunamis Capital.
A stock exchange filing said each shareholder of Dunamis Capital other than its parent, Janashakthi PLC, will receive Rs.48.30 per share when the proposed amalgamation is carried out.
Dunamis Capital share was last traded at the same price.
Dunamis Capital’s public holding as at June 30, 2019 was 1.92 percent, which is not in compliance with the minimum public holding requirements of the Colombo Stock Exchange Listing Rules.
However, Dunamis Capital’s annual report said it received a waiver from the Securities and Exchange Commission (SEC) to comply with the public holding requirement until February 2020.
Subsequent to the amalgamation, Dunamis Capital PLC shall cease to exist and Janashakthi PLC will be the surviving entity.
Last September Janashakthi acquired 31 percent of Dunamis Capital for Rs.1.4 billion and subsequent to the mandatory offer that followed Janashakthi increased its shareholding in Dunamis Capital to the current levels.
Both companies are controlled by the Schaffter family. Dunamis Capital controls two subsidiaries, First Capital PLC, a fully fledged investment bank and Kelsey Developments PLC, a property developer.