Distilleries gains on share swap move

Wednesday, 3 August 2016 00:54 - - {{hitsCtrl.values.hits}}

Distilleries Company yesterday gained by over 15% as investors toasted the share swap move with Melstacorp.

DCSL hit a peak of Rs. 286 before closing at Rs. 277, up by Rs. 37 or 15.42% thereby ranking third highest riser percentage wise.

The Company on Monday announced a reorganisation of the Shares and Stated Capital of DCSL and its fully-owned subsidiary Melstacorp Ltd. As per the move Melstacorp Ltd. will become the parent company of DCSL Plc and other subsidiaries of the current DCSL Group.

In what is believed to be Sri Lanka’s first 180-degree share swap, Melstacorp, which is a 100% owned subsidiary of DCSL Plc, will become the holding company while DCSL Plc will become a subsidiary of Melstacorp Ltd.

Upon the completion of the reorganisation, which requires the approval of the shareholders of DCSL Plc, Melstacorp shall become the Flagship of the Group. The shareholders of DCSL will be allotted shares in Melstacorp, in the proportion of four Melstacorp shares in exchange for every one share they now hold in DCSL.

DCSL Plc shall become a fully-owned subsidiary of Melstacorp and the current shareholders of DCSL shall own shares in Melstacorp and through Melstacorp all the subsidiaries in the Group including that of DCSL.