Dhammika to take personal stake in Singer Sri Lanka

First call on mandatory issue acceptances for him

Colombo business tycoon Dhammika Perera, owning slightly over 50% of the Hayleys conglomerate, will be taking up a personal stake in Singer Sri Lanka PLC of which Hayleys took control earlier this month by acquiring approx. 61.73% from its Dutch holding company.

In a mandatory offer document published last week and due to reach Singer shareholders later this week, Hayleys together with its subsidiaries, Volanka and Carbotels, offered the same Rs. 47 per share price to all other shareholders looking to sell.

The document said that based on acceptances received from Singer shareholders, allocations will firstly be made to Mr. Dhammika Perera, next to Hayleys Advantis, thirdly to Hayleys Agricultural Holdings, fourth to Hayleys Aventura and lastly to Hayleys.

This would mean that Perera, who is joint chairman of Hayleys will have first call on the Singer shares that become available through the mandatory offer. It was not indicated how many he would take.

Singer’s Dutch parent, Retail Holdings (Sri Lanka) BV will continue to hold 9.47% of its original holding for 12 – 15 months when Hayleys have agreed to take up those shares either by itself or through nominees at the Rs. 47 per share price.

Singer Sri Lanka has been trading on the floor of the CSE at price levels of Rs. 45 – 46 but below the Rs. 47 price that will be available to shareholders once the process is concluded in the next few weeks. Those accepting the offer will not have to pay brokerage and other transaction charges they would have to meet if they sell on the secondary market.

Brokers said that while no large volumes of Singer had been transacted on the trading floor since the Sept. 15 takeover of control, there have been some transactions at below the mandatory offer price.

The Hayleys share has declined from the Rs. 280 price it commanded the day before the Singer deal was struck to Rs. 274.50 last Friday.

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