Monday, February 7, 2011

Top shareholders of REEF reject EPL's mandatory offer

The four main shareholders of the Citrus Leisure PLC (REEF) which was formerly known as Reefcomber have informed the company that they would not accept the Mandatory Offer triggered by the hotel's largest shareholder, Emagewise Private Limited controlled by Joint Managing Directors of Triad, Dilith Jayaweera and Varuni Amunugama Fernando.

 The letters of non acceptance by the four shareholders have been annexed with the mandatory offer document that was sent to the shareholders

The main shareholders who have indicated that they would not accept the offer are, Nimal Perera, Ajith Devasurendra, Jayantha Dewage and Raynor Silva.

Raynor Silva being the second largest shareholder of the company holds 10.72 percent of the hotel, as per the 30 September 2010 interim financial reports. Nimal Perera as the third largest shareholder has 5.74 percent while Ajith Devasurendra in the number four slot owns 5.1 percent. Jayantha Dewage the fifth largest stakeholder of Citrus Leisure has 3.75 percent.

Emagewise Private Limited (EPL), a fully owned subsidiary of Triad Advertising co-headed by Dilith Jayaweera and Varuni Amunugama Fernando on January 28 announced a mandatory offer to purchase all the remaining shares of Citrus Leisure PLC, formerly known as Reefcomber PLC.

EPL in a stock exchange filing said that the company and the friendly parties acting in concert currently hold 31.42% (14,826,010 shares) voting rights of Citrus Leisure PLC and offered to buy all the remaining issued and paid up ordinary shares, each at Rs.86 under the Rule number 7 of Company Takeovers and Mergers Code of 1995.

With the change of the name to Citrus Leisure PLC, the company announced its plans to build a four star resort in Kalpitiya following the acquisition of 78 acres of land identified as 'Santhoduwa-Kalpitiya'. The total investment in the land amounted to Rs. 122.18 million. The acquisition is the company's second following a change in the management last year.

The mandatory offer is scheduled to be over on February 18, 2011.

source -

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