Several ACME shareholders unpaid by Lankem despite over 2 months since mandatory offer

Several shareholders of ACME Printing and Packaging PLC have been unpaid yet despite the conclusion of the Mandatory Offer by Lankem Ceylon PLC over two months ago.

In September Lankem Group triggered the SEC Takeovers and Mergers Code when it acquired 19.43% stake or 8 million shares in ACME at Rs. 12 each via EB Creasy. Lankem Group originally held 53.5% stake and during the mandatory offer acquired a 33.43% and a further 1.34% on the trading floor bringing the total control to 88.27%. The Mandatory Offer closed on 24 November.

As at 30 September 2021, ACME’s public float was 20.2% held by 1,607 shareholders. Among minority shareholders were Clovis Company (27%) and Capital trust Holdings (16%). Most of the minority shareholders including Clovis had accepted the mandatory offer.

Some of the shareholders who accepted the offer but yet to receive funds had written to the Securities and Exchange Commission and the Colombo Stock Exchange complaining about the inordinate delay.

Some of the disappointed minority shareholders are contemplating legal action as well.

Analysts said that Lankem Group by virtue of majority had passed several resolutions at the recent Extraordinary General Meeting whereas part of that so-called majority stake was being enjoyed without due payment to original shareholders who divested.

At the EGM held on 12 January this year, three resolutions appointing three directors whose age is above 70 were approved. Among them were new Chairman chartered engineer A. Hettiarachchy.

In December ACME announced a 3 for 1 Rights Issue at Rs. 4.50 per share to raise Rs. 555.6 million to finance working capital and capital expenditure.