Lanka Commodity Brokers makes mandatory offer on Asia Siyaka

Lanka Commodity Brokers (LCB) has announced a mandatory offer to purchase minority shareholding of Asia Siyaka Commodities Ltd., at Rs. 2.80 per share.

This is following LCB last week acquiring 99.5 million shares (a 38% stake) in Asia Siyaka and increasing its holding to 132.6 million shares (51% of the issued shares of the company), from Royal Ceramics Plc, at Rs. 2.80 per share in a deal worth Rs. 371.28 million.

Net asset per share of Asia Siyaka is 66 cents at company level and Rs. 2.03 at Group level.



Whilst the mandatory offer is aimed at 127.4 m shares (a 49% stake), the percentage of shares held by the public is 21.48% as at 31 December 2012. LOLC Investments Ltd. holds 17.15% and several of the Senior Directors also hold shares.

Asia Siyaka is a specialist produce broker, auctioneer, and is an appraiser, valuer, commission agent and general agent.

Tea broking industry analysts said acquisition of Asia Siyaka would consolidate Lanka Commodities’ position to be a leading contender.

Set up in July 2003, Lanka Commodity Brokers has been regarded as the most aggressive with its weekly quantities increasing continuously. As per its website, the company has an approximately 23.5% share of the weekly main sale high and medium grown quantities and an approximately 17% share of total weekly low grown catalogues, ahead of some established brokers. On average, it offers approximately 1,800-2,200 lots per week, comprising of nearly 1.2 million kgs/week.