Assets worth Rs.761 mln revert to PCH Holdings
View(s):Adam Investments Ltd (AINV) on Wednesday disclosed to the Colombo Stock Exchange that the company has entered into an agreement with PCH Holdings Plc and 10 other respondents in case no: HC/CIVIL/23/2014/CO.)
As result of this agreement, Adam Investments gets full management and board control of PCH Holdings Plc and Bieco Link Carbons (Pvt) Ltd. AINV has agreed to pay Rs. 35 million to MMD Ventures Lanka (Pvt) Ltd according to the agreement, according to a media statement from Adam Investments..
It was also revealed that 100 per cent ownership of Bieco Link Carbons will be restored to PCH Holdings Plc. Consequently, PCH Holdings will see a boost in its asset value corresponding to the asset value of this fully owned subsidiary.
PCH Holdings Plc in a corporate disclosure in August declared that their fully owned subsidiary Bieco Link Carbons (Pvt) Ltd was sold to MMD Ventures Lanka (Pvt) Ltd. Adam Investments Ltd has challenged this in courts and with this agreement the disputes will come to an end with PCH Holdings Plc having full ownership of Bieco Link Carbons (Pvt) Ltd.
The latest available audited financial statements published on the Colombo Stock Exchange web site as of 31st March 2013 places the asset value of Bieco Link Carbons (Pvt) Ltd at Rs.761.5 million.
Adam Investments Limited ( AINV) which listed on the Colombo Stock Exchange Diri Savi Board earlier this year is headed by Dr. Ali Asgar Shabbir Gulamhusein.
“AINV made an aggressive takeover bid of PCH Holdings triggering the Mergers and Acquisition code requirement to make a mandatory offer to purchase all outstanding shares of PCH Holdings Plc held by the public but the offer was later suspended pending the settlement of the court case referred to in the disclosure; it is likely to recommence now that an agreement has been reached between the two parties,” the announcement added.