Renuka says On’ally Holdings buy only for investment
View(s):Renuka Capital PLC which has been collecting shares in On’ally Holdings PLC since last year will be improving the Unity Plaza building at Bambalapitiya which On’ally operates, according to sources close to Renuka.
“They aren’t trying to acquire this company but will upgrade this property,” one source said.
Renuka bought 23 per cent stake in On’ally Holdings last September and with the recently purchased 12 per cent earlier this month, which is the stake held by the estate of the late O. Gulamhusein, Renuka now owns 35 per cent. As this is more than 30 per cent, Renuka Capital will have to announce a mandatory offer. According to the sources, it’s more a passive investment for them.
The Urban Development Authority (UDA) is the biggest shareholder with 47.6 per cent stake in On’ally Holdings PLC and UDA sources told the Business Times that they won’t surrender their shares at the upcoming mandatory offer.
Apart from the Unity Plaza sitting on lucrative property value at the Bambalapitiya junction, the building also houses the biggest IT hardware complex in Sri Lanka.