Pereras part ways

Thursday, 9 March 2017 00:52 - - {{hitsCtrl.values.hits}}

Business tycoon Dhammika Perera (left) and his friend Nimal Perera together after one of the market moving acquisitions the duo did - File photo/Daily FT

Together they moved markets, unsettled many traditional Boards and corporates and built a booming business empire. Near two decades later, the once believed inseparable duo, have sent a fresh round of shockwaves by parting ways. Some who sensed the inside out however knew it coming or it was a matter of time.

After a protracted Board Meeting of Royal Ceramics Plc on Monday late evening, a decision was arrived at over the future course. Nimal Perera yesterday resigned as Managing Director of RCL as well as from all Boards of business tycoon Dhammika Perera-controlled companies, including the diversified conglomerate Hayleys Plc and Vallibel One Plc.

A formal announcement was made yesterday by the companies concerned.

Speculation was rife over the developments. One was Nimal was asked to resign and the other was he himself opted to move out. Rumour mill was busy too.

However Nimal told the Daily FT that he decided to move on, on his own, in a corporate sense whilst Dhammika, who commended his former partner for playing his part in forging a group of acquired companies, said he was keen to build on further.

Previously Nimal stepped down as Chairman of Pan Asia Bank, the only Dhammika Perera-controlled entity in which Nimal has slightly over 5% stake, in compliance with good governance directions of the Central Bank for commercial banks having served nine years on the Board. More recently, he resigned from LB Finance Plc.

Their association began in early 2000 when they worked together to acquire strategic stakes in listed companies such as NDB (sold subsequently), Royal Ceramics (and later expanding into Lanka Ceramics Group including Lanka Tiles and Walltiles), Pan Asia Bank, leading to acquisitions of control or strategic stakes in Sampath Bank, LB Finance, Vallibel Finance and Connaissance de Ceylan (now Amaya Leisure), and eventually to Hayleys.

In tandem with emerging opportunities, they went on to acquire a host of companies, triggering an unprecedented number of takeovers. The list some of which were sold out includes AlufabPlc, Lanka Ceramics Plc, New World Securities, Asia Siyaka Commodities, Lewis Brown (Delmege Forsyth Group), Alumex,Lanka Aluminium (25% stake held by Dhammika), Hotel Services Ltd.– nowKingsbury Hotel Plc (via Hayleys), Hayleys Plc, Asian Alliance (29% stake), HVA Foods (51% stake), Sampath Bank, LB Finance Plc, Pan Asia Bank Plc, Royal Ceramics Plc, Rupee Finance (now Vallibel Finance Plc), Horizon Hotel (now Fortress Resorts Plc), Hotel Reefcomber (Amaya Reef later sold and now Citrus Leisure Plc) and Connaissance de Ceylan (now Amaya Leisure Plc).

The market sensed a likely shift in the duo’s course when in mid-2014, Nimal acquired Mercantile Produce Brokers and prior to that an investment vehicle, NP Capital Ltd.

In late June 2014, longstanding Chairman A.W. Weerasinghe stepped down from that post at RCL and Dhammika assumed Chairmanship. It is learnt that Weerasinghe who was subsequently appointed as Deputy Chairman has been entrusted to oversee administration at RCL following the exit of Nimal.