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Tuesday, 18 October 2011 00:30 - - {{hitsCtrl.values.hits}}
Navara Capital Ltd., among promoters of which is financial market specialist Harsha de Silva, yesterday bought control of Infrastructure Developers Plc (IDL), considered a shell company, for Rs. 128 million.
It paid Rs. 27.50 for the block of 4.65 million shares amounting to 95.79% stake. As at 30 September 2010, negative net worth of the company was Rs. 39 million, with accumulated losses being Rs. 87.5 million as against stated capital of Rs. 48.5 million.
The seller was Malaysia-based Flyasia Sdn Bhd, which bought the stake at Rs. 13 per share. The sale reflects double the price at which it bought the stake.
Originally the Malaysian firm bought 3.4 million shares or a 70% stake at Rs. 13 each in August last year from business tycoon Nahil Wijeysuriya and related parties and subsequently made a mandatory offer.
Analysts said Navara Capital, which also figured in the consortium acquiring control of commodities broker Asia Siyaka, may look at “backward integration” – a term used for the process where listed companies buys into unlisted entities as part of growing the business.
Last week IDL closed down by 26.6% or Rs. 10 to Rs. 27.50 with only 10,000 shares traded.