No takers for Dhammika Perera’s offers

Thursday, 24 March 2011 01:18 - - {{hitsCtrl.values.hits}}

Two separate mandatory offers made by business leader Dhammika Perera on Hayleys and Lanka Aluminum under the SEC’s Takeovers and Mergers Code concluded this week with not many takers.

Analysts linked this development partly to independent advisors terming the offers unattractive whilst others viewed it as a sign of shareholders holding on to their stakes for higher value in the long-term.

For the offer made by Dhammika and Royal Ceramics on Hayleys at Rs. 380 per share there were only complete response from shareholders holding 30,259 shares (0.0576% stake) whilst there had been incomplete acceptances from those owning 21,146 shares (0.0403%).

Hayleys share yesterday closed at Rs. 390, up by Rs. 2.90. Dhammika has a personal holding of 25.338% stake whilst connected parties Royal Ceramics held 3.9325% and LB Finance 0.7304%, making it a collective stake of 30.09% at which point the SEC’s Code was triggered.

In the offer for Lanka Aluminum at Rs. 41.50 per share by Dhammika, the response was 1,466 shares in terms of complete acceptance and 300 shares of incomplete acceptances. Prior to the offer Dhammika held a 33.84% stake. Lanka Aluminum shares traded yesterday between a high of Rs. 69.90 and a low of Rs. 52.70 before closing at Rs. 61.60, up by 7.80.