Hayleys proceeds with mandatory offer for Harischandra Mills as acceptance period opens

By Nishel Fernando
Hayleys PLC, the diversified conglomerate controlled by billionaire businessman Dhammika Perera, has formally dispatched the offer document to the shareholders of Harischandra Mills PLC, marking the official commencement of the acceptance period for its mandatory offer. 
The offer was triggered by Hayleys’ acquisition of a 40.58 percent controlling stake in the Matara-based food manufacturer on October 17, 2025.
According to the offer document dated November 21, 2025, Hayleys is seeking to purchase the remaining 1,140,654 ordinary voting shares, representing 59.42 percent of the issued capital, at a price of Rs.3,300 per share. The acceptance window is now open and is scheduled to close at 4:30 p.m. on December 16, 2025. The total financial commitment for the offer, should it be accepted in full, amounts to approximately Rs.3.76 billion.
In its communication to the shareholders, Hayleys outlined the strategic rationale behind the acquisition, emphasising the potential for synergies between its diverse product portfolio and Harischandra’s established brand equity in the FMCG sector. The conglomerate has reiterated its intention to maintain Harischandra Mills as a going concern and confirmed there are no plans to redeploy fixed assets or discontinue any major business segments. Furthermore, the employment of the current workforce is set to continue under the new ownership.
Harischandra Mills reported a steady financial performance for the six months ended September 30, 2025. The company recorded a consolidated revenue of Rs.3.13 billion, a marginal increase of one percent compared to the previous year, while net profit for the period rose to Rs.90.9 million. The company’s net asset value per share stood at Rs.916.64 as of September 30, 2025.
While the offer price of Rs.3,300 is significantly lower than the stock’s recent closing price of Rs.7,004.75, market analysts note that the trading price has likely detached from the fundamentals, due to the extreme illiquidity and retail speculation. The offer price, which is mandated by law to match the highest price paid by the acquirer, still represents a premium of nearly 3.6 times the company’s net asset value, providing a guaranteed cash exit for the shareholders in a counter that has seen no active trading recently.