Cargills goes for compulsory offer on Kotmale to buy remaining 2.74% stake
Monday, 12 January 2015 00:46
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The Cargills (Ceylon) Group has announced a “compulsory” offer to buy the remaining 2.74% stake at large of Kotmale Holdings Plc (KHPLC).
A decision to this effect was made by the Cargills Board last week. The compulsory offer is priced at Rs. 62.50 per KHPLC share. The stock last traded at Rs. 63.
The compulsory offer follows the conclusion of a voluntary offer made in October at Rs. 62.50. During the voluntary offer Cargills secured only responses from shareholders owning around 301,000 shares of below 1%.
As at September 2014, net assets per share at company level was Rs. 9.82, up from Rs. 8.37 a year ago and at group level it was Rs. 29.41, up from Rs. 26 in November 2013.
As of end 2014, the Cargills Group held 97.26% stake, up from 94.07% as at end September.
Cargills’ and related parties’ stake comprises Cargills Quality Foods (94.07%), Cargills (Ceylon) Plc and Cargills Quality Dairies Ltd.
As at 31 March 2014, KHL had 1, 372 shareholders comprising 1,334 individuals holding 4.71% and 38 institutions owning 95.26% stake. Individuals amounting to 1,126 held between 1 and 1,000 shares or collectively 1% stake and a further 215 individuals held 2.25% with shares amounting to 1,001 and 10,000.
Cargills said that it will deposit the aggregate consideration for the outstanding shareholding of KHPLC with company secretaries which will forward such consideration due to all remaining shareholders of shares acquired by CCPLC.
Cargills will merge the operations of KHPLC with Cargills Quality Dairies Ltd., the wholly-owned subsidiary and create a unified entity focusing on carrying out the dairy operations of the group.
