Renuka swaps shares to take near full control of Shaw Wallace

5 October 2015 03:51 am - 0 - {{hitsCtrl.values.hits}}

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In a bid to restructure and streamline the value chain among its group companies, the diversified conglomerate, Renuka Foods PLC offered to acquire 38.77 percent stake in its subsidiary, Shaw Wallace Ceylon Limited from its foreign shareholders by way of a share swap, gaining near full control of the latter. As a result, in the post-swap, the direct and the indirect ownership in Shaw Wallace Ceylon by Renuka Foods will go up to 98.94 percent effective including the shares held by the latter’s 100 percent subsidiary, Renuka Consumer Foods Limited.

“The acquisition of shares in Shaw Wallace Ceylon Limited is expected to accommodate the company’s consolidation drive as well as to strengthen Renuka Food PLC’s net assets attributable to equity holders,” the company said in a stock exchange filing last Friday.

The company will issue one new share for every four Shaw Wallace shares held by its incumbent shareholders at a price of Rs.30.45 a share – 8.75 percent premium over current market price and is also based on the net asset value of the company by the end of June 30, 2015.

As at the end of the last trading day (October 2), the share closed at Rs.24.20, up Rs.1.4 or 6.14 percent.

Thus the company will purchase the 20.36 percent stake held by CJ Patel & Company Limited of Fiji Islands and 18.41 percent stake held by Eagle View Management Limited of Hong Kong by issuing 28.2 million new Renuka Foods PLC shares amounting to 31.4 percent stake in Renuka Foods PLC.

“…and the percentage of the new ordinary voting shares to be issued subsequent to the private placement will be 23.09 percent,” the company further said. The said two companies are also among the two direct shareholders of Renuka Foods PLC holding 12.55 percent and 11.35 percent stakes, respectively.

The company further said the issue of new shares by way of the private placement is subject to the approvals of Colombo Stock Exchange, Securities and Exchange Commission and the shareholders at a general meeting.

Renuka Foods PLC has business interest in plantations, manufacturing, international marketing and local distribution of food and beverage product sectors.

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Renuka swaps shares to take near full control of Shaw Wallace

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