Adam Investments says PCH Holdings entry in line with core businesses
Adam Investments Ltd owner, Dr. Ali Asger Shabbir Gulamhusein who bought 20.8 per cent in PCH Holdings Plc (PCHH) recently, says that it is a sound business in line with his existing businesses.
“I feel that PCHH holds a lot of value in line with my present business which are in garment manufacturing and FMCG,” Dr. Gulamhusein told the Business Times.
He said that he was satisfied with the due diligence that was done on PCHH. “PC House (a PCHH subsidiary) is what has been written about (negatively),” he said.
Last Friday Dr. Gulamhusein paid Rs. 42 million for PCHH’s a 20.8 per cent stake or 52.323 million shares.
Adam Investments controlled by Dr. Gulamhusein and Danushya Mediwake Wethasinghe has Adam Apparels Ltd., Adam Metals Ltd, Network Communications Ltd., Adam Automobiles Ltd. and Adam Air Conditioners Ltd.
PCHH Chairman S.H.M. Rishan whose share transactions in the recent past have been mired in controversy is planning to rope in investors in a bid to restructure and save it from the quandary, sources close to Mr. Rishan said.
“He is trying to get both local and foreign parties,” a source told the Business Times. He said that already Mr. Rishan has had discussions with some parties and that Adam Investments’ entry is as a result of this.
PC House share price which increased as high as Rs 30 in February 2011, a year after it went public, was offered at Rs 11 at the initial public offering. Last quarter it had a Rights Issue to which Employees’ Provident Fund (EPF) which has a 3.3 per cent stake in the company had subscribed to, analysts said. Now EPF 3.3 per cent stake amounts to 11.3 million shares. “Before the Rights Issue it had 7.5 million shares,” an analyst said.
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