Business
Nestle confirms need of approval of 75% of shareholders present at EGM for delisting
Members entitled to remain in company after delisting
Nestle Lanka PLC which has sought shareholder and regulatory permission to voluntarily delist its shares from the Colombo Stock Exchange (CSE) has summoned at Extraordinary General Meeting on June 30 where the board of directors will seek the approval of 75 percent of shareholders present for the delisting resolution.
“This may mean there can be a shareholder effort to jack up the exit offer price that has been made,” an analyst said. “This had happened on two previous instances.”
The circular published in the CSE website sets a price of Rs. 1,500 per share to be paid to shareholders willing to exit. Nestle has said that the exit price reflects a 58% premium on the daily volume weighted average market price over the 12-month period ended March 31, 2023, a 36% premium over the highest traded price over the last 12 months ended Mar. 31, 2023, and a 10% premium to the highest of the fair price range determined by the independent valuer.
Saying that the exit offer “represents a substantial premium over the fair price for the shares,” the directors have recommended the offer to its shareholders adding that those shareholders who wish to retain heir shareholding after the delisting would be entitled to do so.
The circular which does not set out the highest ever price commanded by the Nestle share since listing on the CSE says the exit price is 650% over the net asset value per share set out in the last interim quarterly financial statement of Dec. 2022.
Nestle Lanka PLC which was incorporated in Sri Lanka in 1981 has been listed on the CSE from 1983. The company’s controlling shareholder Nestle S.A. which has an effective shareholding of 91.95% of Nestle Lanka, is the world’s largest food and beverage company operating over 340 factories in 33 countries with its products sold in 188 countries.
Nestle which has been present in Sri Lanka for 115 years, prior to its incorporation as Nestle Lanka had a presence here as Ceylon Nutritional Foods Ltd.
The circular to shareholders says that Nestle has been actively seeking ways to have a more efficient operation here but the company envisaged challenges “in raising significant capital from the shareholders through capital injection to fuel growth and future success of the company as it would result in further dilution of the public shareholding and possible violation of minimum public shareholding requirements as defined in the listing rules.”
Analysts noted that there were two previous instances where dominant shareholders of companies seeking delisting went up substantially on the exit offer price first made to shareholders. This was in the case of AIA Insurance and Property Development PLC, the Bank of Ceylon subsidiary owning the bank’s headquarters building.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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