Mandatory offer for control of Expolanka now made
Singapore-based SG Holdings Global Pte. Ltd. whose parent is a Japanese company has sent shareholders of Expolanka Holdings PLC the mandatory offer documents for the remaining shares of Expo not already owned by it at a price of Rs.10.70 per share. The offer closes on June 17.
The offeror is a fully owned subsidiary of SG Holdings operating as a holding copany for the group’s overseas subsidiaries.
``The long term commercial justification of the acquisition is to facilitate strategic direction/growth of the freight forwarding business of the SG Holdings group,’’ the offer document said.
SG has stated that it wishes to cooperate with Expo to expand the freight and logistic business and will not prevent Expo, which has been divesting its non-core businesses from carrying on its ongoing business activities.
``The offeror does not intend to implement any major changes in the business, including any redeployment of fixed assets of the offeree company in the short-term,’’ SG has said.
According to information published in the offer document, the offeror had incurred a loss of USD 9.85 million in the financial year 2013/14, up from a loss of USD 1.95 million a year earlier.
The offeror’s balance sheet for the last financial year indicates net assets of USD 68.7 million, up from USD 8.55 million a year earlier.
However its parent company, SG Holdings Co. Ltd. had posted a net profit of Japanese yen 16,651 million in 2013/14, down from Japanese yen 23,430 million a year earlier. The parent’s net assets published in the last balance sheet is Japanese yen 179,128 million, up from Japanese yen 166,120 million the previous year.
Analysts noted that there has been substantial trading in the Expolanka share slightly below the Rs.10.70 price of the mandatory offer subsequent to the offer being announced. Brokers and analyst said that the selling was partly due to some shareholders looking for quick cash before the mandatory offer was completed.
www.island.lk
Singapore-based SG Holdings Global Pte. Ltd. whose parent is a Japanese company has sent shareholders of Expolanka Holdings PLC the mandatory offer documents for the remaining shares of Expo not already owned by it at a price of Rs.10.70 per share. The offer closes on June 17.
The offer document specify that financial facilities of approximately Rs.5.73 billion has been arranged with the HSBC Bank to enable the offeror to acquire the remaining shares of the company from its other shareholders.
The previous controlling interest of Expolanka comprising the Kassim family and the company’s CEO, Mr. Hanif Yusoof, have undertaken not to accept the mandatory offer although they have agreed to make available the necessary shares, should the need arise, to enable the offeror to acquire the controlling interest of over 51% of the company.
SG Holdings Co. Ltd. Is a businbess group with Sagawa Express Co. Ltd. at its core. Sagawa is one of the largest delivery and logistics service providers in Japan with an extensive nationwide network including various businesses ranging from delvery, logistics, real estate and others.
The previous controlling interest of Expolanka comprising the Kassim family and the company’s CEO, Mr. Hanif Yusoof, have undertaken not to accept the mandatory offer although they have agreed to make available the necessary shares, should the need arise, to enable the offeror to acquire the controlling interest of over 51% of the company.
SG Holdings Co. Ltd. Is a businbess group with Sagawa Express Co. Ltd. at its core. Sagawa is one of the largest delivery and logistics service providers in Japan with an extensive nationwide network including various businesses ranging from delvery, logistics, real estate and others.
The offeror is a fully owned subsidiary of SG Holdings operating as a holding copany for the group’s overseas subsidiaries.
``The long term commercial justification of the acquisition is to facilitate strategic direction/growth of the freight forwarding business of the SG Holdings group,’’ the offer document said.
SG has stated that it wishes to cooperate with Expo to expand the freight and logistic business and will not prevent Expo, which has been divesting its non-core businesses from carrying on its ongoing business activities.
``The offeror does not intend to implement any major changes in the business, including any redeployment of fixed assets of the offeree company in the short-term,’’ SG has said.
According to information published in the offer document, the offeror had incurred a loss of USD 9.85 million in the financial year 2013/14, up from a loss of USD 1.95 million a year earlier.
The offeror’s balance sheet for the last financial year indicates net assets of USD 68.7 million, up from USD 8.55 million a year earlier.
However its parent company, SG Holdings Co. Ltd. had posted a net profit of Japanese yen 16,651 million in 2013/14, down from Japanese yen 23,430 million a year earlier. The parent’s net assets published in the last balance sheet is Japanese yen 179,128 million, up from Japanese yen 166,120 million the previous year.
Analysts noted that there has been substantial trading in the Expolanka share slightly below the Rs.10.70 price of the mandatory offer subsequent to the offer being announced. Brokers and analyst said that the selling was partly due to some shareholders looking for quick cash before the mandatory offer was completed.
www.island.lk
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