Hemas Holdings PLC yesterday announced its purchase of a 71.5% voting stake and a 50% non-voting stake in J.L. Morison Son & Jones (Ceylon) PLC (JLM) valued at Rs. 1.7 Bn.
The Incumbent Chairman, R. Abeyawira, who has been part of the JLM Group for 61 years and due to retire from the business says, "When the time came for us to look for a new parent for the business, our priority was to find the right partner, a party capable of taking the business forward. Having discussed with several prospective partners, we selected Hemas since it has the best fit with our business portfolio and is capable of taking this business to greater heights, building on our people-oriented culture and values".
CEO of Hemas Holdings PLC., Husein Esufally said, "We look forward to working closely with the team at JLM bringing our deep insights into consumer and pharmaceutical business, helping to develop JLM as a leading consumer and wellness company"
Despite turnover yesterday topping Rs.2.5 billion largely on account of the Morison’s deal, the market closed marginally down though turnover was up from the previous day’s Rs.906.1 million, with the all Share Price Index losing 0.69 points (0.01%) and S&P SL20 down 4.6 points (0.13%) with 114 gainers slightly ahead of 108 losers while 90 counters closed flat.
Apart from the Morison’s crossings involving 4.15 million voting shares done at Rs. 366.50 contributing over Rs.1.5 billion to turnover and nearly 0.6 million non-voting shares at Rs.219.70 generating Rs.129.6 million, there were block trades of 0.9 million Lanka Tiles crossed at Rs.80 per share contributing Rs.72 million and one million CT Land crossed at Rs.32 contributing Rs.32 million to the day’s business volume.
Brokers said that the Morison’s sale had been under negotiation for nearly two years and explained that floor trades in the share (both voting and non-voting) were at lower levels than the big blocks that changed the company’s ownership. This was due to some investors opting for cash now against the higher mandatory price that will follow some weeks later.
"During early trading there was speculation on at what price the deal would eventually go through," a broker said. "But even after it was completed, some sellers opted for cash now rather than wait six weeks for the mandatory offer to be concluded at a higher price."
Chevron Lubricants was the biggest turnover generator on the trading floor with over 0.4 million shares done closing Rs.1.90 up at Rs.320 on a trading range of Rs.318 and Rs.323. The counter contributed Rs.142.1 million to turnover.
Morison’s non-voting share moved up sharply by Rs.34 to close at Rs.219.10 on nearly 0.4 million done between Rs.179.10 and Rs.221 contributing Rs.80.5 million to turnover. The voting share gained Rs.37.20 to close at Rs.349 on 0.1 million shares done between Rs.312 and Rs.358.80 generating a turnover of Rs.36.3 million.
Nation Lanka Finance saw strong volume with nearly 6.8 million shares done between Rs.10.60 and Rs.12.10 closing 90 cents down at Rs.10.90 contributing Rs.77.8 million to the day’s turnover.
JKH continued to edge down closing Rs.1.60 down at Rs.287 on nearly 0.2 million shares done between Rs.286 and Rs.288.60 turning over Rs.52.4 million.
Other counters demonstrating both volume and price gains included Colombo Land up Rs.1.10 to Rs.53.70 on 0.6 million shares, Lanka Tiles up Rs.4 to Rs.79 on 0.3 million shares, Tokyo (non-voting) up 90 cents to Rs.20 on nearly 1.1 million shares, Hemas Holdings up Rs.1.90 to Rs.26.90 on over 0.5 million shares and Distilleries up Rs.3.90 to Rs.204 on 94,321 shares.
Last edited by sriranga on Fri May 31, 2013 3:19 am; edited 1 time in total