Tuesday, 3 June 2014

Singapore firm triggers Takeovers Code on E-Channelling

Buys 17.5% more for Rs. 300 m at Rs. 14 per share to increase holding to 47.4%

Singapore’s Senior Marketing Systems Asia Pte Ltd., (SMS) yesterday triggered the SEC Takeovers and Mergers Code on eChannelling PLC at Rs. 14 per share.

This is following SMS buying 17.5% or 21.429 million shares at Rs. 14 each to increase its overall holding to 57.946 million shares or 47.4%. The major seller was British American Technologies which exited from eChannelling divesting 16 million shares.

The price paid by SMS yesterday was higher in comparison to Rs. 9 when it acquired a 15% stake in October last year, also from BAT of Ruwan Silva-fame who is also a Director of eChannelling.

SMS first acquired eChanneling shares in September last year at Rs. 8.50 each.
Other major shareholder of eChannelling is Trading Partners Ltd., holding 28%. It acquired the bulk of the stake at Rs. 10 per share in November 2013.

SMS also bought around 5 million shares from the market including around 3 million from a foreign shareholder.

As at 31.3.2013, eChannelling had 2,275 shareholders of which over 1,800 were holding between 1 to 10,000 shares each.

Net asset per share of eChannelling was Rs. 1.31. It finished FY14 with a profit of Rs. 52 million, down from Rs. 77 million in the previous year.
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