Wednesday May 22, 2024
Wednesday May 22, 2024
Friday, 14 July 2023 02:50 - - {{hitsCtrl.values.hits}}
Bullish on exports Ceyline Holdings Ltd., yesterday bought control in pioneer Dankotuwa Porcelain Porcelain (DPL) for Rs. 2.3 billion triggering the SEC’s takeovers code. Both Ambeon Holdings (GREG) and Dankotuwa Porcelain (DPL) announced 81,439,013 ordinary shares of DPL have been disposed of by Ambeon Holdings (GREG) yesterday. The disposed shares account for 50.10% of the stake in DPL and were disposed to a consideration of Rs. 2.3 billion or Rs. 28.30 per share to Ceyline Investments Ltd.
Ceylin Investments is a fully owned subsidiary of Ceyline Holdings which has extensive interests in the maritime and shipping sector. The acquisition was done via crossing. DPL share price closed at 10 cents down Rs. 27.
The impending deal was first announced on 16 June.
Ceyline Holdings Director Roshan Egodage told the Daily FT that the acquisition was made purely on huge future potential apart from the Group’s keenness to enhance foreign exchange earnings via higher exports. It was the first acquisition in the exports sector in recent years.
Egodage acknowledged that previous controlling shareholders Ambeon post-acquisition enhanced value and performance of DPL to achieve its best ever results in FY23 whilst amidst challenges the company is expected to do better in the current FY24 as well. DPL is a pioneer exporter of world class porcelain wear to over 30 countries. For FY23, DPL Group increased revenue by 57% to Rs. 6 billion and gross profit by 71% to Rs. 2.06 billion. Pre-tax profit jumped by 321% to Rs. 888 million and after tax by 214% to Rs. 594 million. DPL at company level achieved a post-tax profit of Rs. 611.8 million in FY23, up by 45% from the previous year.
“DPL has a great leadership and team and we see huge potential,” Egodage added.
It is learnt that Amebon which continues to hold 22% stake in DPL will not accept the mandatory offer though it sold the control at a profit.
The public float of DPL is 27.34% held by 5,116 shareholders. Amebon Group held 72.5% as of 31 March 2023.
