Sunday, October 2, 2011

United Motors seeking more acquisitions

United Motors PLC (UML) is looking to diversify into other areas – especially Fast Moving Consumer Goods (FMCG) and trading firms, riding high on great sales in its vehicles, officials said.

"We are eyeing other such opportunities in areas like FMCG and trading,” a UML official told the Business Times, noting that UML’s core business, auto trade, is doing quite well due to duty concessions in the vehicle's import sector.

"This is why we are also eyeing other areas. We are quite confident to pursue other areas as we have more than stabilised in the specialised sector," he added. He said that UML is looking at acquisitions in any sector, but they are not keen on tourism. “This is because many are entering into this area and it’s also not in our forte,” he added.

He added that they had dropped the J. L. Morison acquisition plan, reported by the Business Times earlier, as the price range was not right about two weeks ago. The UML official added that Morison's attraction was its businesses in importing and distributing finished pharmaceuticals, toiletries, agro chemicals, medical aid, and other consumer products.

When the Business Times contacted S.I. Abeywira, Chairman and 40% shareholder of J.L. Morison, recently he said that the company isn't for sale, but that if they get a decent offer they will sell.

Morison's was also eyed by entrepreneur and businessman, Dhammika Perera but his bid has not been upto the major share owners’ interest, who according to the sources want Rs 5,500 per share.

source -

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