Maxis mandatory offer price for SLT stock attractive-report

The mandatory offer price of Rs 50.50 by Global Telecommunications Holdings (GTH), the company that bought a 35.19% stake in Sri Lanka Telecom (SLT) on behalf of Maxis, is attractive and at a premium, the Merchant Bank of Sri Lanka, independent advisor on the offer, has said.

In a communication to shareholders sent through SLT, the advisor said after the mandatory offer the liquidity level of the company "could decline depending on the amount of shares accepted in the offer."

SLT chairperson Leisha De Silva Chandrasena said in separate letter to shareholders that 'they (SLT directors) have no reason to disagree with the opinion expressed (by the advisor on the price).’ Earlier this week Maxis told Sri Lankan journalists in Malaysia that its expertise and knowledge will be useful in devising new strategies for SLT. Maxis CEO Sandip Das said SLT's current set of assets across the fixed and mobile businesses as well as national and international long distance services were reasons for buying into the company. Representatives from GTH were not present at the briefings. Das said questions on the SLT deal should be directed to GTH officials.