The restructure of its activities is subject to relevant shareholder approvals at an Extraordinary General Meeting (EGM) after its Annual General Meeting (AGM) next month, the company said in a notification to the Colombo Stock Exchange.
“Colonial Motors will phase out the company’s motor vehicle related business activities and accordingly limit the same to meeting pre-existing obligations in that regard as such, the company will cease to undertake any new business in relation to repairing and servicing of motor vehicles and the importation and sale of vehicle spare parts,” it said.
The company wants to restrict business to being primarily that of a property holding and investment company while continuing to be listed on the exchange.
KIA Motors (Lanka) Ltd will remain a subsidiary of the company and will continue to import and market the KIA range of vehicles, the announcement added.
“The Directors have approved in principle the transfer of Carplan Ltd, currently a subsidiary of the Company, to KIA Motors (Lanka) Ltd, to be its subsidiary and also to be a principal dealer of KIA motor vehicles. The modalities of affecting these matters will be determined in due course subject to the necessary approvals, if any, being obtained therefore and change the name of the Company to C M Holding PLC subject to obtaining the prior written approval from the Registrar-General of Companies,” the statement added.