Dhammika Perera seen reducing stake in Lanka Ceramic
Anthony Page, Chairman Lanka Ceramic PLC is expected to buy 30 per cent in this company from businessman Dhammika Perera who would still hold a 51 per cent stake, officials close to Mr. Perera said.
A consortium of investors led by Mr. Perera’s Royal Ceramics bought over 24 million shares or 80 per cent of Lanka Ceramic PLC held by the Page family-owned Ceylon Theatres Group early this month at Rs 2.9 billion which saw a share traded at Rs.120.
In the transaction, Vallibel One PLC controlled by Mr. Perera bought 1 million shares while Vallibel subsidiary, Royal Ceramic bought 21 million shares. The 80 per cent stake which Mr. Perera’s companies’ bought included Lanka Ceramic and its subsidiaries Lanka Tiles, Lanka Walltiles, Talawakele Plantations, and Horana Plantations.
Mr. Page also bought 1 million shares. “In the mandatory offer to purchase the remaining shares, Mr. Page will buy 30 per cent for Rs 1 billion. Royal Ceramics has made an application to the Colombo Stock Exchange pertaining to this arrangement at the mandatory offer stage and its pending approval,” the official the Business Times. He said that the mandatory offer which will start on June 7 will see Mr. Page purchasing the shares at the same price it was sold at – Rs 120.
He said that this is a substantial personal investment for Mr. Page and that he has organised his finances to buy the 30 per cent.
Analysts said that this strategic purchase now enables Royal ceramics to enjoy the monopoly in the country’s tile manufacturing industry with imported tiles being the company’s only competitor controlling some 25 per cent market share at present. “This would almost double the floor tile manufacturing capacity to 27,000 square metres per day, they said.
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