Perpetual Capital Holdings to go public with W.M. Mendis and Company
View(s):Perpetual Capital Holdings, the new owners of liquor manufacturer, W.M. Mendis and Company say they are looking at going public in the medium term with this latest acquisition.
“We now own 80 per cent in W.M. Mendis and we’re looking at listing the company in the Colombo Stock Exchange (CSE),” Arjun Aloysius, Chairman / CEO Perpetual Capital Holdings told the Business Times. He said that Perpetual Capital Ltd, an investment fund which started in 2009 has been primarily investing in public listed firms and started investing in private equity last year. “W.M. Mendis is the first such acquisition and we’re considering more such acquisitions in the near future,” he added.
He added that after W.M. Mendis is listed, Perpetual Capital is looking at a possible sell-out. Currently, Mendis products are exported to the United Kingdom, Singapore, Japan, Australia and Canada.
Mr. Aloysius said that many acquisitions are in the pipeline, but nothing has yet been executed. “We’re eyeing acquisitions of firms in industries such as tourism, infrastructure, manufacturing, etc. We believe that those are the growth industries,” he said.
Mr. Aloysius noted that Perpetual Capital always invests in fundamentally strong shares. “We put our money in listed firms which have aggressive CEOs and top management. LOLC, John Keells Holdings, all of Dammika Perera’s firms, etc are what we invest in,” he said, noting that firms with a Sri Lankan identify are what they are interested in.
He said the Sri Lankan capital market will play a big role in the country’s economic growth.
When asked about low capitalized shares that are rising at unprecedented prices, Mr. Aloysius said that to a regular trader some of these firms may be over valued, but if the particular company grows at a rate higher than the economy or the share market, then it has potential.
“If a particular owner of a company believes in its growth, then there’s nothing wrong with it, as long as you don’t fleece the investors.”
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