EGM votes in favour of delisting and mega Rs. 63 b exit offer of Expolanka

Expolanka Directors signing proxies received in favour of the resolutions 

Shareholders queuing up for registration ahead of the EGM - Pi by Shehan Gunasekara

Shareholders witnessing the counting of votes yesterday at the EGM

• 80.84% for delisting and 19.16% against; 81.12% in favour of exit offer and 18.88% against

The Rs. 63 billion worth exit offer from Expolanka Holdings Plc to minority shareholders was passed last night by majority vote at the Extraordinary General Meeting held yesterday at the Water’s Edge.

The resolution on delisting won 5,138 votes in favour (80.84%) and 1,218 against (19.16%) from a valid votes base of 6,356 both proxies and shareholders. The exit offer price won 5,129 votes (81.12%) in favour and 1,194 (18.88%) against from a valid vote base of 6,323 from proxies and shareholders in person.

Majority of the shareholders who were present in person at the EGM had voted against both resolutions whilst the majority who voted in favour were via proxies. 

Around 900 shareholders were present at the EGM and counting of votes went on till midnight. The process was scrutinised independently by Ernst & Young and Deloitte. Several enthusiastic minority shareholders were present till the final result was announced.

The EGM began at 4.30 p.m. during which several minority shareholders voiced their opinion against the offer at Rs. 185 per share and demanded a higher price. In the audience were those who supported the special resolution as well. 

Prior to the EGM, a host of stock brokers too recommended the exit offer to minority shareholders (see https://www.ft.lk/top-story/Brokers-back-Expolanka-exit-offer-as-Rs-63-b-mega-opportunity-comes-up-for-vote-tomorrow/26-759960)

The EGM saw maximum security but was concluded without any incidents. As exclusively reported by the Daily FT yesterday the Court of Appeal on Tuesday dismissed applications by three minority shareholders to suspend the EGM. (see https://www.ft.lk/front-page/Court-of-Appeal-rejects-application-by-3-minority-shareholders-of-Expolanka-to-stop-today-s-EGM/44-760015)

With co-founder and Director Hanif Yusuf confirming his exit with 7.5% stake, Expolanka’s parent Japan’s SG Holdings shareholding rose from 82.4% to 90%. The balance 9.9% stake in Expolanka is held by 20,850 shares as at 31 December 2023. Seventeen of the largest public shareholders account for 35% of 194 million shares open for the exit offer (See https://www.ft.lk/top-story/Minorities-merry-over-Rs-63-b-mega-Expolanka-exit-offer/26-759145).