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.
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Sri Lankan stocks at near 4-year high on hopes of economic reforms

COLOMBO, Jan 9 (Reuters): The Sri Lankan index closed at a near four-year high on Friday, after pro-business opposition candidate Maithripala Sirisena defeated President Mahinda Rajapaksa, raising hopes that the new government will push through economic reforms.

The main stock index ended 1.44 per cent, or 108.19, higher at 7,605.79, its highest since March 2011.

"The market is optimistic after the election results. It is mainly because of possible economic policies by the main opposition United National Party, which backed the opposition candidate," a stockbroker said.

Rajapaksa lost his bid for a third term on Friday, ending a decade of rule that critics say had become increasingly authoritarian and marred by nepotism and corruption.

The central bank last week said the economy would grow annually at 8 per cent between 2015 and 2020 after achieving an estimated growth of 7.8 per cent in 2014.

Turnover was 3.74 billion rupees ($28.48 million), boosted by local buying and well above last year's daily average of 1.42 billion rupees, stock exchange data showed.

The index gained 23.4 per cent in 2014 after rising 4.8 per cent in the previous year. It has lost 3.5 per cent since Nov. 19 when Rajapaksa announced his decision to hold a snap presidential election on Jan. 8.

The rupee forwards traded slightly higher in dull trade on Friday, while exporters stayed away awaiting clear policy direction after the election, dealers said.

Four-day forwards, which were actively traded, ended at 132.75/85 per dollar compared with Thursday's close of at 132.80/90, dealers said.