Wednesday, 18 September 2013 00:31
Adam Investments yesterday acquired a 10% stake in Orient Garments for Rs. 30 million.
The stake amounting to 5.5 million shares was done at Rs. 5.50 each.
Overall Orient Garments, which is part of the troubled PCH Group, saw 9.6 million shares traded for Rs. 53 million. Net asset value per share of Orient is Rs. 12.
Adam Investments’ investment in Orient Garments is said to be strategic whilst it also has interests in the same industry via Adam Apparels. The latter has been in the industry for over three decades and in June this year June, 2013 Adam Apparels launched its state-of-the-art design centre that is equipped to cater to international market standards.
Adam Group Chairman is Dr. Ali Asger Shabbir Gulamhusein.
As at June 2013, PCH Holdings held a 51% stake in Orient Garments whilst the second largest shareholder was Dr. T. Senthilverl with a 14% stake.
The acquisition into Orient Garments comes two weeks after Adam Investments bought a 21% stake in PCH Holdings for Rs. 42 million. Prior to that in August, British American Technologies bought a 24% stake in PC Pharma as well.
In the June 2013 quarter Orient Garments reported a loss of Rs. 52 million, up from a Rs. 27 million loss a year earlier. In the financial year ended on 31 March 2013, the Group’s post tax profit was Rs. 52 million.