Reference price of Rs. 69 per share published for Melstacorp
December 3, 2016, 6:35 pm
Melstacorp Ltd., the new holding company of Distilleries Company of Sri Lanka PLC (DCSL), last week published a draft introductory documents (filed with the Colombo Stock Exchange and included in its website) indicating that that approx. 1.165 billion of its shares will be listed on the main board of the CSE.
Melstacorp became the holding company of DCSL by virtue of a court and shareholder approved ‘arrangement’ under which each DCSL share is being swapped for four shares of Melstacorp.
A reference price of Rs. 69 per Melstacorp share is stated in the draft introductory document.
The swap would be completed once regulatory approvals are finalized. The publication of the draft introductory document by the CSE is indicative that the CSE process is virtually complete and SEC clearance is awaited but no dates have been given.
DCSL Chairman Harry Jayawardena who is described in the introductory document as "one of the most successful and prominent business magnates in Sri Lanka" is Chairman/Director of Melstacorp and Mr. Amitha Gooneratne, former Managing Director of the Commercial Bank is its MD.
The other directors are Messrs. CR Jansz, Niranjan Deva Aditya, Capt. K.J. Kahanda, Dr. Naomal Balasuriya, Don Hasitha Stassen Jayawardena, R. Seevaratnam and Ms. V.J. Senaratne (alternate for Niranjan Deva Aditya).
Messrs. Jansz and Kahanda (in addition to the MD) are executive directors, Deva Aditya, Balasuriya and Seevaratnam are independent, non-executive directors and Hasitha Jayawardena a non-independent, non-executive director.
The draft document indicates that the Melstacorp directors have been paid emoluments including bonus and/or profit sharing payments of a total of Rs. 37.4 million in the year ended March 31, 2016, and it is estimated that they will be paid Rs. 39.1 million in the next financial year ending March 31, 2017.
The only director/shareholder of Melstacorp is Mr. Hasitha Jayawardena with approx. 7.53 million shares (subject to SEC approval).
DCSL, with Melstacorp as its holding company, will remain a listed entity on the CSE. It is expected to make a new share issue (at a yet undisclosed price) with preference in allotment given to its former shareholders in the future.
According to the draft introductory document, Melstacorp as holding company of DCSL is a diversified conglomerate domiciled in Sri Lanka with its business interest spanning Beverage, Plantations, Telecommunication, Financial Services and Other Diversified Sectors.
DCSL is the market leader in the hard alcohol segment in the country. Balangoda Plantations PLC and Browns Beach Hotel PLC are subsidiaries of the Melstacorp Group which are listed on the Colombo Stock Exchange (CSE).
Furthermore CSE listed conglomerate Aitken Spence PLC and Madulsima Plantations PLC are associate companies of Melstacorp. The Group employs a staff cadre of approximately 12,700.