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Monday, September 12, 2011

Dilith, Nimal brace for colonial acquisition

By Indika Sakalasooriya

Advertiser turned investor Dilith Jayaweera and high net worth investor Nimal Perera are getting ready to acquire a private company which has a legacy over 150 years and also considered as one of the oldest mercantile establishments in Sri Lanka, Mirror Business learns.

According to informed sources, Dilith and Nimal have treaded ahead half the way, acquiring over 40 percent shareholding from some of the directors of the company and are planning to buy 100 percent within a month’s time, once legal issues pertaining to the sale of shares were sorted out.

The sources further revealed that Dilith has invested in the firm under consideration through his investment vehicle Divasa Equity, which was earlier known as Emagewise while Nimal under his personal name.

“Following the investment, Dilith is expected to consolidate his equity investments under this company and for Nimal, this would mark his first major investment without his colleague, Dhammika Perera,” a source close to the deal said.

“Specially, Nimal has expressed his unwillingness to continue as a high profile investor and trader. So this investment would be quite crucial for him as he is looking at the long term,” the source added
He further revealed that the duo is likely to spend over a billion rupees on the complete acquisition.

The firm Dilith and Nimal are eying has been one of the leading businesses houses in the colonial Ceylon, mainly engaging in plantation management. In fact at one time, it was managing the largest acreage of tea plantations in the island.

But with the nationalization of the plantations during mid 1970’s, the company moved into other selected businesses such as tea exports, distribution of pharmaceuticals, travel and ticketing, airline representation, property development, assembly of telephones and other electronic products, freight forwarding, insurance and higher education.

The company is also one of the leading recruitment agencies in the country.According to analyst, the major attractions of the company to Nimal and Dilith would have been diverse business interests, legacy and the land bank it owns in the Colombo Fort area.

source - www.dailymirror.lk