Reflecting its bullishness on equities as well as its sectors, new kid Adam Investments Ltd. yesterday triggered two takeovers involving PCH Holdings Plc (PCHH) and PC Pharma Plc. (PCP).
It acquired 83 million shares or 33% of diversified holdings PCHH, thereby increasing its stake to nearly 43%, whilst on PCP it bought 5.5 million shares or 5.4%, effectively upping its stake to 31.15%. The SEC Takeovers and Mergers Code threshold is 30%.
PCHH saw in total 95.7 million of its shares traded for Rs. 192 million, thereby becoming the second highest in terms of turnover.
PCHH finished the day at Rs. 2.10, up by 30 cents (it hit an intra-day high of Rs. 2.20) whilst PCP, which saw 13.7 million of its shares traded, closed 20 cents down to Rs. 1.90 after hitting an intra-day high of Rs. 2.
Adam Investments last week bought a 26% stake in PCP for Rs. 37 million with previous largest owner British American Technologies Ltd. being among major sellers.
Previous controlling shareholder of PCHH was its Chairman S.H.M. Rishan via his Dynaris Holdings Ltd., and personal holding pledged to NDB as of end December 2013.
Orient Garments also saw some activity with 1.3 million shares traded and price up Rs. 7.80 to close at Rs. 27.10 with speculation rife that a related party to Adam was on the buying side. Adam holds a 40% stake in Orient Garments
Adam Investments’ strategy appears to be consolidation and optimism of reviving both PCHH and PCP.
Adam, which had its debut on the CSE in early June, also has equity investments in Ceylon & Foreign Trades Plc and substantial shares of private limited liability companies, namely Network Communications Ltd., Adam Metals Ltd., Adam Apparels Ltd., Adam Automobiles Ltd. and Adam Air Conditions Ltd.
Adam, which raised Rs. 300 million via its IPO at Rs. 3 per share, yesterday saw its share price peak to Rs. 5 before closing at Rs, 4.90, up by 20 cents.
Adam Investments’ Board of Directors – led by Dr. Ali Asger Shabbir Gulamhusein – believes uniting these entities under the Adam Investments umbrella will strengthen all, allowing each company to thrive in their respective sectors while synergies and streamlined management practices between companies could help create a sustainable environment for growth and excellence.