Singer SL takes command of Singer Industries

Tuesday, 5 January 2016 00:01 - - {{hitsCtrl.values.hits}}

Singer Sri Lanka has bought over 83.55% of a controlling stake in Singer Industries (Ceylon) at Rs. 206 a share from its parent Singer (Sri Lanka) B.V., with the transaction amounting to a total of Rs. 662 million.

Accordingly, Singer Sri Lanka purchased 3.2 million shares in Singer industries held by Singer (Sri Lanka) B.V. making the former the Immediate Parent Company and the latter to be an Intermediate Parent Company.

The company in a stock exchange filing said the rationale behind this move was the restructure of the legal and management structure of the global Singer group’s overall operations.

Moreover, Singer Sri Lanka PLC is in view that the aforesaid transaction will not give rise to a mandatory offer in the basis that the former is the subsidiary of Singer (Sri Lanka) B.V. so that the purchase of shares from Singer Industries (Ceylon) PLC amounts to a transfer between ‘parties acting in concert.’

Singer (Sri Lanka) B.V. holds a 107.8 million controlling stake amounting to 86.11% of total shares in Singer (Sri Lanka).

Pursuant to the aforesaid purchase Singer Industries (Sri Lanka) recorded a market close price of Rs. 173.10 yesterday - 6.28% down from the previous closing price of Rs. 184.70 whilst its parent company Singer (Sri Lanka) gained marginally as its share price was up slightly by 0.1% yesterday to Rs. 138, compared to the previous close price of

Rs. 137.90