RIL Property now owns 74% of Panasian Power

• Invests nearly Rs. 2 b in strategic diversification to renewable energy

RIL Property PLC has increased its stake in Panasian Power PLC (PAP) to 74%, following the conclusion of a mandatory offer.

RIL originally held 61.67% stake, or 385.46 million shares, and via the mandatory offer it acquired a further 12.38%, or 77.4 million. As at 30 June, the public float of PAP was 33% held by 6,792 shareholders.

The offer follows RIL on 9 July acquiring 61.68% stake by way of a series of crossing transactions on the CSE at Rs. 4.30 per share, or total consideration of Rs. 1.65 billion.

The acquisition by RIL, part of United Motors Lanka PLC, was a strategic diversification.

Major sellers of PAP in the early July deal included Dilanka Jinadasa who held 27% and Emerald Sri Lanka Fund which held 20% and Senthilverl Holdings (14.4%) along with related party holdings.

Post-acquisition RIL has elicited investor interest in the market. Last week 25 million RIL shares changed hands via 2,275 trades for Rs. 213 million. The share price gained by 60 cents to close at Rs. 8.60. Its 52-week highest was Rs. 11.40. The volume was higher as against 13 million shares in the previous week when price rose by only 10 cents. However yesterday RIL closed at Rs. 8.30, down by 10 cents.