Finlays to delist; offers Rs. 302 per share in exit deal worth Rs. 350 m

By Shehana Dain

Finlays Colombo Plc has decided to de-list from the Colombo Stock Exchange offering an exit price of Rs. 302 per share or Rs. 350 million.

A Board resolution to this effect was approved on Tuesday subject to regulatory approval. The Board has made arrangements with James Finlay Ltd., of Swire House, London for the purchase of shares from shareholders who wish to divest. The 1974 established diversified multinational firm has been listed on the CSE since November 1992.

The exit price is nearly double the book value at group level and close to three times at company level. As at June 2015, net asset value per share at company level was Rs. 135.60, up from Rs. 129 a year earlier and from Rs. 130.60 as at end December 2015. At Group level the NAV was Rs. 169 as at June 2015, up from Rs. 163 a year ago and December 2015. 

For the June 2015 quarter the stock traded at a high of Rs. 309 and a low of Rs. 232 before closing at Rs. 296, lower than Rs. 308.60 finish a year ago.

James Finlay holds nearly 96.68% stake in the company or 33.84 million shares. The public holding is a mere 2.89% whilst it has 664 shareholders of whom 628 hold between one and 100 shares collectively holding 88,061 or 0.25%. Second largest shareholder is Ceybank Unit Trust with 1.4%.

As at June 2015, Group assets amounted to Rs. 7. 4 billion. Total equity was Rs. 5.9 billion including retained earnings of Rs. 5 billion. Liabilities amounted to Rs. 1.4 billion. For the six months of FY15, group revenue was down 6% to Rs. 2.8 billion, and pre-tax profit was up 43% to Rs. 200 million. Bottom line for equity holders of the parent was Rs. 216 million, up by 51% over the first half of FY14.

In full year of 2014, revenue was Rs. 5.9 billion, up from Rs. 5.4 billion in the previous year. Profit before tax was Rs. 399 million, as against Rs. 391 million in 2013. After tax profit was Rs. 232 million, down from Rs. 284 million.