Singer Sri Lanka buys control of group company

Singer (Sri Lanka) PLC has bought over 3.2 million shares of Singer Industries Ceylon PLC (SINI) for Rs.662 million in an off-the-floor deal, as part of a previously announced internal restructuring plan.
While the trade was done at Rs.206 per share, the current traded price of SINI is Rs.183 per share.
The transaction represents 83.55 percent of the shares in SINI, which were sold by Singer (Sri Lanka) BV, the parent company of Singer (Sri Lanka) PLC.
“Accordingly, Singer Sri Lanka PLC will be the immediate parent of the company with effect from January 4, 2016. Singer Sri Lanka BV will continue to be an Intermediate Parent Company,” a Singer Industries filing to the Colombo Stock Exchange said. 
The transaction would not trigger the Takeovers and Mergers Code as it was considered a transfer of shares between the parties acting in concert. 
The restructuring plan calls for Singer (Sri Lanka) BV to shed its holdings in SINI and Regnis (Lanka) PLC, both manufacturers of consumer durables such as washing machines and refrigerators.
Singer (Sri Lanka) BV owns 58.29 percent of the shares in Regnis (Lanka).

The restructuring process aims to streamline the subsidiaries of the group in preparation of the listing of Singer Asia, which is the parent company of Singer (Sri Lanka) BV.
Fitch Ratings said that the restructuring is unlikely to have a large impact on Singer (Sri Lanka) PLC’s credit profile.