Kuruwita Mills in delisting via buyback offer

Tuesday, 18 February 2014 00:01 - - {{hitsCtrl.values.hits}}

Offers Rs.30 per share to all shareholders, will convene special GM to approve plan

Brandix subsidiary Kuruwita Textile Mills has sought shareholder approval to delist from the official list of the Colombo Stock Exchange (CSE) and to arrange a shareholder buyback, the company said in a notification to the CSE yesterday. The Board of Directors had made the decision following a meeting on 13 February to seek the approval of the shareholders to delist the company and arrange to buy the shares from any shareholder who wishes to sell his shares. The majority shareholder Brandix Textile Holdings Ltd. has agreed to purchase all shares offered on sale by the shareholders at Rs.30 and insisted the directors consider it a “fair” offer. “Over the last four years management of Kuruwita Textiles has taken several steps to turn around the company and return to profitability. However, these steps have not been successful and the net assets per share of the company has reduced from Rs. 43.09 as at 31 March 2011 to Rs. 24.10 as at 31 December 2013,” the notification said. The company assured it will take all necessary steps in terms of the regulations issued by the Securities and Exchange Commission with regard to delisting of shares, including the convening of an Extra-Ordinary General Meeting of the shareholders to seek their approval of the said de-listing of shares.

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