Tuesday Oct 28, 2025
Tuesday Oct 28, 2025
Monday, 27 October 2025 03:49 - - {{hitsCtrl.values.hits}}
HNB Investment Bank (HNBIB), acting as the independent adviser, has recommended that shareholders of Myland Developments PLC (MDL) not accept the mandatory offer made by Ambeon Capital PLC, citing that the offer price of Rs. 8.50 per share is below most of the company’s fair-value estimates.
HNBIB’s valuation placed MDL’s fair value above the offer price under several methodologies: the discounted cash flow (DCF) valuation yielded Rs. 9.57 per share; peer price-to-book value (P/BV) multiple suggested a higher value of Rs. 12.74 per share, benchmarked against Prime Lands Residencies PLC; the volume-weighted average price (VWAP) of MDL shares over the past month was Rs. 18.86, more than double the offer price; and net asset value (NAV) per share stood at Rs. 3.97, implying the offer carried a 114% premium to book value but a discount to market and earnings-based valuations.
“The offer price of Rs. 8.50 is at a discount to most valuation methods, including the DCF and VWAP benchmarks. Given the recent trading levels and forecast improvements in performance, shareholders should not accept the offer,” the report stated.
On Friday, the MDL share closed at Rs. 17.50, up by Rs. 0.60 from the previous week. The public float of the company is 18% held by 826 shareholders.
In September, Ambeon Capital, together with ATX Partners Ltd., Arcasia Investment & Trading Ltd., and Sujeewa Mudalige, acquired 81.73% of MDL, purchasing 29.6 million shares at Rs. 8.50 per share.
The consortium has extended a mandatory offer to acquire the remaining 18.27%, or 6.6 million shares, at the same price, the highest paid within the past 12 months.
Under Ambeon’s management, MDL plans to accelerate its real estate projects, targeting the completion of the Belummahara project this year and launching four new developments annually from 2026 onwards.
The company forecasts revenues to rise from Rs. 48.8 million in FY2025 to over Rs. 640 million by FY2029, with gross profit margins stabilising near 32%.
MDL, which went public in 2021, focuses on land acquisition and development primarily in Sri Lanka’s Western Province.
