Thursday 13 November 2014

Assets worth Rs. 761 m reverted to PCH Holdings

* Adam Investments settles case with M. Rishan and others over Bieco with Rs. 35 m payment; gets full control of PCHH and carbon venture

Adam Investments Ltd., (AINV) announced yesterday it has entered into an agreement with PCH Holdings Plc and 10 other respondents in the recent case filed in the Commercial High Court.

As result of this agreement, AINV gets full management and Board control of PCH Holdings Plc and Bieco Link Carbons Ltd. AINV has agreed to pay Rs. 35 million to MMD Ventures Lanka Ltd. according to the agreement.

In addition it stated that 100% ownership of Bieco Link Carbons Ltd. will be restored to PCH Holdings Plc. Consequently, PCH Holdings will see a boost in its asset value corresponding to the asset value of this fully owned subsidiary.


PCH Holdings Plc, in a corporate disclosure in August, declared that their fully-owned subsidiary Bieco Link Carbons Ltd. was sold to MMD Ventures Lanka Ltd. Adam Investments Ltd. has challenged this in courts and with this agreement the disputes will come to an end with PCH Holdings Plc having full ownership of Bieco Link Carbons Ltd.


As per 31 March 2014 accounts, the asset value of Bieco Link Carbons Ltd. is Rs. 761.5 million. Valuation of Bieco Link Carbon was excluded in PCHH accounts as at September 2014 due to the case.

In a separate development but involving related parties, the winding up application for Orient Garments Plc filed by Jeremy Grebbe was resolved as well.

The petitioner and the company entered into an agreement that the application will be withdrawn in settlement of Rs. 1.4 million as payment to the petitioner.

Adam Investments which listed on the Colombo Stock Exchange Diri Savi Board earlier this year is headed by Deshabandu Dr. Ali Asgar Shabbir Gulamhusein.

AINV made an aggressive takeover bid of PCH Holdings, triggering the Mergers and Acquisition code requirement to make a mandatory offer to purchase all outstanding shares of PCH Holdings Plc held by the public but the offer was later suspended pending the settlement of the court case referred to in the disclosure; it is likely to recommence now that an agreement has been reached between the two parties.
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