Thursday, September 29, 2011

JL Morison sale: Deal or no deal?

CORPORATE circles were abuzz with an alleged bizarre development of first a deal and then no deal between J.L. Morison Sons and Jones (Ceylon) Plc controlling shareholders and prospective buyer United Motors Lanka Plc.

Market talk was that the two had signed a Sales and Purchase Agreement at Rs. 4,300 per share but when the transaction was due for execution, the seller had backed out.

If stories doing the corporate rounds are true, then neither of the listed parties had disclosed the first development concerning the signing of the sales and purchase agreement irrespective of whether the deal was on or not subsequently.

J.L. Morison which has 580,829 voting shares in issue last traded on Monday at Rs. 3,400 whilst its all time high is Rs. 4,500. Last week the share price closed at Rs. 3,300, down by Rs. 401. It also has 174,249 non-voting shares in issue which traded yesterday at Rs. 2,400, down by Rs. 245 from its previous close.

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