Al-Futtaim Engineering LLC has said in an offer document to all minority shareholders of AMW that full acceptance of the offer at Rs.174.50 per share would cost the company nearly Rs.2.4 billion and these funds have been committed by Al-Futtaim and confirmed by its bankers, HSBC Colombo.

According to the offer document Al-Futtaim Engineering has posted a turnover of 539.1 million AED in 2007, up from 397.1 million AED the previous year and a profit after-tax of 60.58 million AED, up from 35.4 million AED in 2006 (One AED equals Sri Lanka Rs.29.33).

In the first half of the current financial year Al-Futtaim had a turnover of 283.1 million AED and a profit after-tax of 25.8 million AED.

The company is engaged in the operation of agencies for consumer electronics, lifts, escalators, cradles, air-conditioners, building products and sanitary ware, installation of electrical equipment and execution of special projects for which commissions are received.

"The board of Al-Futtaim will offer its experience and expertise to assist in the achievement of AMW’s strategic and financial objectives and improve its overall performance to enhance shareholder value," the document said.

Al-Futtaim has already purchased 85% of AMW and a decision by members of a branch of the de Zoysa family and a connected company holding 10% on whether they would accept the offer or not is awaited, well informed sources said.