Lankapage Logo CP 18 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Retail Holdings announces sale of Singer Sri Lanka to Hayleys
Thu, Sep 14, 2017, 12:29 am SL Time, ColomboPage News Desk, Sri Lanka.

Sept 13, Willemstad, Curaçao: Retail Holdings announced today that the Company has entered into an agreement to sell, through the Colombo Stock Exchange approximately 61.7% of the total issued shares in the Company's subsidiary, Singer (Sri Lanka) PLC (SSL) to Hayleys PLC, a publicly listed Sri Lanka conglomerate.

The transaction is anticipated to close before month-end.

The Company will continue to own an approximate 9.5% stake in Singer Sri Lanka. The approximately remaining 28.8% of the shares of Singer Sri Lanka are publicly owned. Singer Sri Lanka had revenue of approximately $331.7 million and attributable profits of approximately $9.3 million in the twelve months ended June 30, 2017.

The net profit after taxes and expenses from the transaction is projected to be approximately $38.5 million. The net cash consideration will be approximately $69.0 million. In each case, 54.1% of these amounts is attributable to the Retail Holdings shareholders. This is equivalent to approximately $4.48 per share and $8.03 per share, respectively.

Commenting on the transaction, Stephen H. Goodman, the Company's Chairman, President and CEO, said, "The sale of Singer Sri Lanka is a significant milestone in the execution of Retail Holdings' stated short-to-medium term strategy. Equally important, we will be passing the Singer business to a highly prestigious local owner in Hayleys PLC, founded in 1873, whose ambitions and resources will enable Singer Sri Lanka to continue its strong growth. We are firmly committed to remain active in the development of Singer Sri Lanka and will lend every support to Hayleys PLC and to our excellent local management team as the new vision for the business takes shape."

Following the sale, SSL will have a royalty bearing license from SVP Worldwide, the owner of the Singer trademark, to use "Singer" in the company name and the "Singer" brand on its stores, products and services. Stephen H. Goodman, Chairman of Retail Holdings and of Singer Asia, Gavin Walker, President of Singer Asia, and Asoka Pieris, Managing Director of Singer Sri Lanka, will continue as directors of SSL, and Singer Asia will continue to provide certain technical assistance, as required.

As previously announced, on or about November 21, Retail Holdings will make an additional $1.00 per share distribution to shareholders of record on November 17. That distribution will not use any of the proceeds from the Singer Sri Lanka divestment. No decision has yet been made as to the use of these proceeds and other cash that has accumulated at Singer Asia.

 

ColomboPage - Recent 10 Stories ::
British High Commission Colombo celebrates Britain's creative industries.
-- [3 hours ago]
Sri Lanka Premier pledges support from next year budget to uplift grassroot businesses
-- [3 hours ago]
Sri Lanka parliament passes bill to increase female representation in Provincial Councils with two-third majority
-- [4 hours ago]
Sri Lanka electricity workers end strike, doctors to begin 24-hour anti SAITM strike
-- [5 hours ago]
New initiatives to boost production of Sri Lanka porcelain, red clay and glass
-- [6 hours ago]
Sri Lanka President, First Lady meet U.S. President and First Lady
-- [6 hours ago]
Sri Lankan Court grants bail to former government officials Lalith Weeratunga and Anusha Palpita
-- [6 hours ago]
Sri Lanka parliament temporarily adjourns due to Joint Opposition members' disruption
-- [7 hours ago]
Much need to be done for peacebuilding and reconciliation in Sri Lanka - UN
-- [7 hours ago]
India assists in upgradation of Thondaman Vocational Training Centre in Sri Lanka's upcountry
-- [8 hours ago]

Copyright © 2000, 2016 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.