Market overtakes Dhammika’s mandatory offer for RCL
Mr. Dhammika Perera has through the Merchant Bank of Sri Lanka Limited made his mandatory offer for the purchase of shares of Royal Ceramics Limited (RCL) in terms of the Securities and Exchange Commission’s Takeovers and Mergers Code.
However, Perera’s twenty-two rupee offer price is not likely to find acceptance in the context of the RCL share trading in the Rs. 25 to Rs. 26 range last week.
Perera was obliged to make the offer following his purchase of 1.7 million RCL amounting to just under 3.1% of the company’s issued capital on September 5 at prices ranging from Rs. 21 to Rs. 22 per share, thereby increasing his holding of the company to 32.92%. He then became obliged to make the mandatory offer at the Rs. 22 price which was the highest price he had paid for RCL shares in the 12 months preceding September 5.
Perera who is the Deputy Chairman of the company said that he had not received any irrevocable undertaking from any other shareholder of RCL to accept or reject his offer. Prior to his acquisition of the September 5 parcel, he held 29.84% of the company.
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