Metropolitan Resource Holdings in Rs. 28 per share de-listing move

Metropolitan Resource Holdings Plc has announced a de-listing from the Colombo Stock Exchange offering Rs. 28 per share. 

The company said a resolution to this effect was approved by the Board on 31 December 2015.

It said the decision was made as in the opinion of the management there is no rationale for the company to continue to be listed on the CSE. This is after taking into consideration that the only asset of MRH is the investment in 67% stake in Bogawantalawa Plantation Plc which is also a listed entity. MRH said 48% of the total expenses of the company, is incurred to be a listed entity.

“The shares of MRH have had a low liquidity over the last several years, as a result of which there is a strong possibility of the price of a share to be manipulated, thereby distorting its real value,” MRH said in its disclosure to the CSE.

In view of these factors, the Board has decided to recommend buying holdings of willing shareholders at Rs. 28 per share.

As at 30 September 2015, net asset value per share at company level was Rs. 20.40 and Rs. 48.22 at Group level.

It closed the second quarter at Rs. 27.90 after hitting a high of Rs. 34 and a low of Rs. 26. Last traded price on 31 December 2015 was Rs. 28.50.

The move is subject to approval by the Securities and Exchange Commission and by shareholders at an EGM.

The public holding of MRH as at 30 September 2015 was 21% held by 772 shareholders. Total number of shares in issue is 17.265 million. The company was incorporated in 1974 and was listed in 1995.

MRH Chairman Dinesh Ambani holds 24.40% stake. Among other major shareholders are Ocema Investment Company 17.65%, Kelmarsh Investments Ltd. 17%, Sealbe Holdings AG 8.4%, L.T.C. Murman 7.6%, Director C.M.O. Haglind 6.73%, Metrocorp Ltd. 4.8% and Dr. Romesh Dias Bandaranaike 4.2%.

Group revenue in the first half of FY16 was Rs. 2 billion, up from Rs. 1.9 billion a year earlier. After tax profit was Rs. 63 million, as against Rs. 116 million in the first half of the previous year. Net profit attributable to equity holders was Rs. 43 million down from Rs. 79 million.

In FY15, Group revenue amounted to Rs. 4.2 billion and a post-tax profit of Rs. 136.5 million whilst bottom line amounted to Rs. 93.6 million.