Distilleries share trading to be halted to facilitate share swap

Trading in Distilleries Company of Sri Lanka (DCSL) will be halted on October 3 as part of implementing a share swap between DCSL and i t s prospective parent Melstacorp. The DCSL shareholders will be entitled to an allotment of four shares in Melstacorp for one share held in DCSL at the end of trading on September 30.

Following this, Melstacorp will purchase 100 percent of the shares in DCSL and the trading halt will be in effect until new shares are issued by DCSL—with a preferential allotment to Melstacorp shareholders—to satisfy the minimum public float requirement of the listing rules of the Colombo Stock Exchange (CSE). According to the rules, a Main Board company such as DCSL should have either a 20 percent public shareholding or a market capitalization of Rs.5 billion in the hands of 750 public shareholders. The action is dependent on shareholder approval at an Extraordinary General Meeting and court approval at the next hearing on the case next month. Following the share swap, Melstacorp will be listed on the CSE.