Saturday 10 January 2015

Unilever sells over 4-acre Grandpass property for billion rupees

Unilever Sri Lanka Ltd., (previously Lever Brothers Ceylon Ltd.) has sold its extensive Grandpass property of over four acres, three roods and 8.6 perches for a consideration of over rupees one billion to Ceylon and Foreign Trades Plc. (CFT).

CFT has called an extraordinary general meeting of its shareholders on Jan 16 for the purpose of passing special resolutions authorizing the purchase an also for borrowing the purchase consideration from Sampath Bank to finance the transaction.

The company will mortgage the property it has bought to Sampath as security against the borrowing and shareholder authorization is also being sought authorizing the CFT board, to dispose at their discretion current investments held by the company including its stores and office complex at K. Cyril. C. Perera Mawatha (Bloemendhal Road) to partially settle the borrowings at prices and terms to be determined by the board.

Given that CFT’s assets as at Sept. 30, 2014, stood at Rs. 919.8 million, and the deal to acquire the Unilever property is greater than half the company’s assets, the Companies Act stipulates that shareholder consent by way of a special resolution is necessary.

However, due to the limited time given by the seller, the CFT board authorized the purchase with the concurrence to shareholders with over 80 percent voting rights and made an announcement on the trading floor of the CSE informing shareholders of the purchase.

The EGM is now being called to obtain covering shareholder approval for the required special resolutions for these transactions.
www.island.lk

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