Hayleys to acquire remaining stake in Harischandra Mills

Hayleys PLC has announced a mandatory offer to purchase 1,140,654 ordinary voting shares, representing 59.42% of the issued shares, of Harischandra Mills PLC at a price of Rs. 3,300 per share.

The offer follows Hayleys’ recent acquisition of 778,946 ordinary voting shares, equivalent to 40.58% of the total issued shares of Harischandra Mills, on 17 October. The transaction was executed at the same price of Rs. 3,300 per share.

Following this acquisition, Hayleys PLC became obligated under Rule 31(1)(a) of the Company Takeovers and Mergers Code of 1995 (as amended in 2003) to extend a mandatory offer to all remaining shareholders of Harischandra Mills PLC. The rule stipulates that when any party acquires 30% or more of the voting rights of a company, either through a single or a series of transactions, that party must, within 35 days, make an offer to purchase the remaining voting shares.

In compliance with the Code, Hayleys’ mandatory offer covers the remaining 1,140,654 shares, representing the balance 59.42% of Harischandra Mills PLC’s issued ordinary voting shares. The offer price of Rs. 3,300 per share is in line with Rule 31(3) of the Code, which requires that the offer price be the highest paid by the acquirer during the acquisition process.

Harischandra Mills PLC, a well-known household goods manufacturer listed on the Colombo Stock Exchange, has long been recognised for its products in the local market.

Source: The morning