United Motors to buy Dutch Lanka Trailer from Tata Group unit for Rs.700mn

United Motors Lanka PLC (UML) said yesterday it has entered into a share sale and purchase agreement with TRF Singapore Pte. Ltd. to purchase 100 percent shareholding of Dutch Lanka Trailer Manufacturers Limited for a total sum Rs.700 million.
UML in a stock market filing said the deal is subject to the terms and conditions of the said share sale and purchase agreement. 

Indian media reports said the sale also included 100 percent subsidiary Dutch Lanka Engineering (Pvt) Ltd.
Dutch Lanka Trailer Manufacturers Limited is a BOI registered company incorporated in1992 and is engaged in the design, engineering and manufacture of a range of port and road trailers for both domestic and export markets. 
The seller TRF Singapore Pte. Ltd. is a wholly-owned subsidiary of TRF Limited, a Tata Group company.
TRF Limited acquired the 100 percent shareholding of Dutch Lanka Trailer Manufacturers Limited in 2012 by acquiring 49 percent of the company for US$ 8.33 million after acquiring 51 percent of it in 2009 for US$ 8.67 million.
In its filing, UML did not specify its intended financing strategy for the purchase. As of June 30, 2023, the UML Group maintained cash and cash equivalents totaling 
Rs. 613.5 million.

UML share closed at Rs.73.00 yesterday, down Rs.1.00 or 1.35 percent from the previous close.
Established in 1945, UML is one of the oldest automobile companies in Sri Lanka. The UML Group markets renown automotive brands such as Mitsubishi passenger and Fuso commercial vehicles from Japan, Perodua compact cars from Malaysia, JMC commercial vehicles, Brilliance vans and Zotye cars from China, and DFSK SUVs from Indonesia.

The company also distributes Liu Gong concrete mixing equipment and forklifts from China, Greaves power generators from India, Yokohama tyres from Japan, Valvoline lubricants, Prestone and Simoniz car care products from USA and JCB earth moving equipment and power generators from India. 
The company’s latest range of products in the market include 3D Printers from USA, Netherlands, Singapore and China and Nasiol nano coating products from Turkiye. 
RIL Property PLC, controlled by the Yaseen family, owns 51 percent of UML shares.