Mr. Perera added that RCL will not go into backward integration (diversifying into similar businesses), but will selectively buy into different businesses. He said that RCL is a cash rich company, but strategically sold its 12.3% stake in The Fortress for Rs. 246 million and 0.5% stake in Hayleys for Rs.137 million to Vallibel One Plc, which is a connected party to Mr. Dhammika Perera's firms to raise money to buy Asia Siyaka. “We did this on Wednesday ahead of Thursday’s sale,” he said, adding that RCL will find synergies between plantations owned by Hayleys Plc and Asia Siyaka.
Meanwhile Hayleys denied a report in last week’s Sunday Times that it was negotiating the purchase of shares of Asia Siyaka. In an announcement to the Colombo Stock Exchange on Wednesday-April 4, Hayleys Chairman Mohan Pandithage, referring to the April 1 news item, said “neither Hayleys nor its subsidiaries were negotiating with Asia Siyaka for purchase of its shares.” The report said the deal was being done through Hayleys director and powerful businessman Dhammika Perera.
source - www.sundaytimes.lk
Asia Siyaka Commodities Ltd. has decided to buy a 100% stake in licensed rubber broker Siyaka Produce Brokers Ltd., from Siyaka Management Ltd. (SMPL), for Rs. 7 million.
Asia Siyaka said the move was in line with the disclosure made in its introductory document wherein intention to expand the current portfolio by venturing into rubber broking industry was revealed.
Anil Cooke and Dammika J. Wedande, Executive Directors of Asia Siyaka, are also Directors of SMPL. The two of them as well as U.A. Sirisekera and Rogan Iddawela are Executive Directors of Asia Siyaka, as well as shareholders of Siyaka Ltd., the 100% owners of the rubber broking firm.