RIL Property PLC (“RIL” or the “Company”) announced on the Colombo Stock Exchange that it acquired a 30% stake in United Motors Lanka PLC (“UML”) from the latter’s major shareholder, M. A. Yaseen via a crossing on November 8, 2017, for a consideration of Rs 2.36 billion.
RIL has also received an undertaking from the major shareholder that he would not accept the Mandatory Offer once made by RIL.
However, in the event RIL fails to secure adequate acceptances under the Mandatory Offer by the minority shareholders, to ensure it holds 51% in UML; the major shareholder will facilitate this by divesting a further quantity of shares to RIL in order for RIL to hold a majority shareholding.
Hiroshini Fernando - CEO of RIL, commenting on the transaction said, “The acquisition of UML further deepens our access to prime properties in Colombo and its suburbs and opens many more opportunities for long term real estate development.
Post acquisition, the strength of UML’s core business operations and strong dividend track record, will also contribute to the overall strength of RIL Group. In the meanwhile,RIL is steadily progressing towards using the funds raised through our recent IPO to achieve the objectives stated in the Prospectus, particularly the redevelopment of the “READYWEAR” Building. We are also actively pursuing the branch expansion strategy of the BreadTalk operation in line with our intended plans. “
NDB Investment Bank acted as the transaction advisor to RIL whilst Nithya Partners acted as Legal Advisors to the transaction.
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