Feb 18, Colombo: Kuruwita Textile Mills, a leading manufacture of textiles for the garment export industry in Sri Lanka, has decided to delist the company from the Colombo Bourse and offer to buy back shares from the shareholders.
In a stock market disclosure at the CSE Monday, the company said its efforts to make the company profitable have not been successful.
The company said that over the last four years management of Kuruwita Textile Mills PLC (KURU) has taken a number of steps to turnaround the company and return to profitability.
"However these steps have not been successful and the net assets per share of the company have reduced from Rs.43.09 as at 31st March 2011 to Rs.24.10 as at December 2013," the company said in a statement.
The disclosure further said that "Accordingly the Board of Directors of the company at a meeting held on 13th February 2014 has made a decision to seek the approval of the shareholders to de-list the company from the official list of the Colombo Stock Exchange and to arrange to buy the shares from any shareholder who wishes to sell their shares."
The majority shareholder, Brandix Textile Holdings Limited has agreed to purchase all shares offered for sale by the shareholders at Rs.30 per share and the filing said that Directors consider it as a fair price for the share, the textile company said.
The statement further said the company will take all necessary steps in terms of the regulations issued by the Securities and Exchange Commission (SEC) of Sri Lanka with regard to delisting of shares, including the convening of an Extra - Ordinary General Meeting of the shareholders to seek their approval of the said de-listing of shares.