The People’s Bank and People’s Leasing and Finance have made a joint mandatory offer of Rs. 22 a share to other shareholders of People’s Merchant Finance PLC to purchase their shares in People’s Merchant Finance (PMF) and the offer document is now with shareholders.
On July 3 this year the joint offerors acquired a total of (approx) 6.46 million shares (9.57%) in PMF triggering provisions of the Company Takeovers and Mergers Code of 1995 and became liable to offer the 22-rupee price to all remaining shareholders of PMF.
This totals an aggregate of approx. 34.58 million shares (51.23%) that the two offerors do not already own.
The acquisition of 9.57% of the shares of PMF in July took the People’s Bank and People’s Leasing and Finance above the 30% threshold obligating the mandatory offer at the 22-rupee price which is the highest they had paid in the preceding 12 months.
Assuming full acceptance, the cost of buying all the shares they do not already own would cost approx. Rs. 760.7 million which the People’s Bank has certified in the offer document as available to the offerors.
Describing the People’s Bank as "one of the largest commercial banks" and People’s Leasing and Finance as "the largest leasing and finance company" in the country, they said that acquiring a controlling stake in PMF will give them an opportunity to deploy their expertise to enhance the performance of PMF adding greater value to its shareholders.
They intended to continue the operations of PMF as a standalone business, managed independently and there are no immediate intentions to absorb that company either into the People’s Bank or People’s Leasing and Finance.
The joint offerors also said they do not intend making major changes to the current business operations of PMF nor any intention of redeploying any of PMF’s fixed assets. They would retain existing employees of PMF and maintain the status quo.
Prior to July 3, 2015, the People’s Bank and People’s Leasing and Finance owned 39.20% of PMF with the People’s Bank owning 26.13% and People’s Leasing and Finance 13.07%. This increased after July 3 to 30.93% and 17.84% respectively totaling 48.77%.
www.island.lk
No comments:
Post a Comment