RCL raises Rs. 383 m via share sales for Asia Siyaka buy

Friday, 6 April 2012 00:01 - - {{hitsCtrl.values.hits}}

Royal Ceramics Plc on Wednesday raised Rs. 383 million via sale of stakes in Hayleys Plc and The Fortress Resorts Ltd. to related parties ahead of its buy of Asia Siyaka Commodities Ltd.’s control.

In separate deals, RCL sold 13.67 million shares or a 12.3% stake in The Fortress for Rs. 246 million and 0.37 million shares (0.5% stake) in Hayleys for Rs. 137 million. The buyer was Vallibel One Plc, which is a connected party to others in the deals.

The acquisition of 51% control of Asia Siyaka for Rs. 321 million by RCL was to be concluded yesterday.

RCL’s foray into commodity broking is part of its select diversification strategy. Apart from existing clients of Asiya Siyaka, the new controlling shareholder will also have exposure to several plantations owned by Hayleys Plc.