News

Crisis-hit Dankotuwa Porcelain finds new investor

Crisis-hit Dankotuwa Porcelain found new investors this week after its board of directors signed an agreement with Environmental Resources Investments (ERI) and its subsidiary Ceylon Leather Products (CLP) to sell a 66.6% stake in the company.

The company which produces tableware for ‘fine dining’ and exports mainly to Europe has been grappling with a costly workforce, restive labour and rising debt since 1990. Last week it reached agreement with unions on the need to restructure and bring in a new investor.

According to an announcement on Thursday to the Colombo Stock Exchange, the ERI-CLP consortium has agreed to pay Rs 433.4 million at Rs 9 per share for the Dankotuwa stake. The deal is subject to shareholder and regulatory approval.

The main investor in Dankotuwa now is a consortium of Japanese companies. Brokers said the new investor (ERI-CLP) would be getting majority control at a discount because the stock was last transacted at Rs 21 a share on Thursday.

ERI which also has a stake in the platinum mining industry in South Africa, has been making waves in the local market during the past two to three years as an investment company.

Last year it acquired Walker & Greig and the CLP, on June 3 it took a majority stake in the South Asia Textile Industries which has a garment factory on 76 acres at the former Pugoda mills property. It has smaller stakes in other companies.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other News Articles
EU gets tough; GSP Plus ends on Aug. 15
Surrender would have saved thousands of lives: Solheim
Sigiriya toilet plan flushed out
Controversy over the ball
Lanka’s war on UN panel begins with Ratner
Veteran journalist dies after attack by rogue
Govt. says confident of narrowing budget gap
Dambulla Economic Centre story:Correction
Indian Navy chief here for key talks
Qatar assures good relief for migrant workers
Interpol issues red notice for arrest of lawyer
58 street children in search of a place to set up a school
Corruption charges against CMC: CM to take action
Lebanese housewife jailed for abusing Lankan maid
Fish market mafia cornered
Maryam’s ordeal — from aid ship to Israeli jail
Crisis-hit Dankotuwa Porcelain finds new investor
Jathika Hela Urumaya implodes
Illegal immigration thrives despite war’s end
Multi-pronged attack to battle dengue says Govt.
Make sure garment factory workers are protected, say trade unions
Victory on the rock: People power stops Sigiriya project
UN Panels, GSP+ and lessons to be learned

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution