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Monday Nov 18, 2024
Monday, 31 July 2017 00:15 - - {{hitsCtrl.values.hits}}
Dr. Ali Asger Shabbir Gulamhusein has announced the mandatory offer to acquire remaining shareholding in Ceylon and Foreign Trades Plc.
Dr. Ali Asger Shabbir Gulamhusein
This is following Dr. Ali on Thursday buying 61% stake or 87.5 million shares at Rs. 5 each of CFL in a deal worth Rs. 437.5 million. Prior to that he held 1.47% stake in CFT.
Idris Shabbir being the executor of the estate of late Dr. Shabbir Abbas Gulakhusein, the holder of 29.18 million shares (20.8%) of CFL has confirmed un writing that they will not sell any CFT shares either via the mandatory offer or in the market place prior to the closure of the offer.
That leaves 23.5 million shares amounting to 16.78% stake at large for the mandatory offer. The Company has around 1,700 shareholders with a public holding of 16.47%.
The Net Asset Value of CFT amounts to Rs. 12.54 per share as per the latest published interim accounts, which is a significant discount to its market trading price. CFT on Friday traded at Rs. 5.50.
CFT traces its history back to 1949, one year after the country gained independence from British rule, when a group of pioneering businessman banded together to form this company. CFT is one of the oldest trading companies in Sri Lanka, which was established in 1949 and became a publicly quoted company in 1978.
CFT being an asset rich company which is mainly into real estate, presently owns a two-acre warehousing complex along Bloemendal Road, a 96-perch land in Sedawatta, a five-acre property in Grandpass which is known as the Unilever property and holds 22% ownership of On’ally Holdings Plc, which is a public quoted company with substantial real estate interest in the country including Unity Plaza becoming its second largest shareholder.
Dr. Ali is an experienced entrepreneur who has already acquired a reputation in the market for reviving companies through tighter cost control, security and risk management, coupled with a fresh perspective on the respective businesses.
A spokesman said this acquisition will be just the beginning of a future rife with potential for CFT and its stakeholders.
Dr. Ali holds a PhD from Tokyo Japan and a Degree from King’s College, London. He also serves as a Director of the Insurance Board of Sri Lanka and the Textile and Apparel.
