The Securities and Exchange Commission (SEC) has given conditional approval for the mandatory offer of Browns Power Holdings Ltd. to purchase the remaining shares of Agalawatte Plantations Plc (APL).
Previously the SEC directed the withholding of the sale proceeds of this transaction pending an inquiry into allegations made by certain parties opposing the sale of a 60.8% control in APL by Mackwoods Plantations Ltd. on 14 July for Rs. 304 million. Browns in a disclosure to the market said that the SEC on 30 August had approved the mandatory offer which is to acquire 39.8% stake or 9.8 million shares at Rs. 20 each.
The SEC has directed that Browns shall be bound by court orders that may be made in the final disposal of several cases before courts.
An application has been made in the High Court by Nirmali Samaratunga seeking several interim orders against the offeror to restrain the offeror from taking control of APL and to restrain the SEC from approving the mandatory offer. An application has been made by the offeror in the Court of Appeal against the SEC to compel the commission to grant approval to the mandatory offer.