Al-Futtaim acquires AMW shares
Bob Farrow flanked by Zoysa brothers
Pictures by Saliya Rupasinghe
Al- Futtaim Engineering, the Dubai based automotive retail,
electronics and financial services conglomerate acquired a majority
shareholding of Associated Motorways PLC. With this acquision AMW office
in Colombo will be the head quarters for the SAARC region, its sources
“The company needs to infuse more capital to accelerate the growth
therefore Al-Futtaim will invest heavily on medium to long term
perspectives of the company,” Chairman, AMW, Ajitha de Zoysa told a
press conference announcing the deal.
The company has notified the Colombo Stock Exchange (CSE) on this Rs
7 billion deal, which is the 30th largest business entity in the
“In line with the CSE’s takeover and mergers it will be an
unconditional offer following the official confirmation to acceptances
of the above 50 per cent threshold. Among many synergies between AMW and
Al-Futtaim group the company will evaluate the strength of the company,”
Al-Futtaim bought 71 per cent of the company for Rs 7 billion
purchasing Rs. 174.50 for a share, he said.
The company being family owned for more than 59 years, primarily
manufactured retread tyres to the largest public transport company known
as South Western Bus Company, which was established by Sir Cyril De
“With this new strategic partnership, the company will be a major
development force in the Sri Lanka’s economic development,” Zoysa said.
Therefore after the present Chairman Ajitha de Zoysa’s retirement,
Deputy Chairman/Managing Director Tilak de Zoysa will be appointed as
the Chairman of the company.
“We have to think out of the box with the current economic changes in
the world and this is an extremely friendly takeover. Therefore, they
will mainly focus not only on the local market but also overseas
markets,” he said.
“AMW is on the threshold of making several large investments
including an automotive assembly project and the proposed real estate
development refereed to earlier. This transformation will convert AMW
into a multi-national corporation in the future,” he added.
Zoysa said the recent real estate development plan with John Keells
and James Finlays, AMW would further strengthen it. They will also look
to other sectors like plantation retail business and many more.
Al-Futtaim- Senior General Manager- Business Development Automotive
Division Bob Farrow said after carrying out a comprehensive due
diligence, the group CEO Omar Al-Futtaim will visit Lanka to do a
comprehensive study on the company’s potential.
Al-Futtaim has decided to take over the majority control of the
company as an initial step. “It will bring in new management expertise,
create employment opportunities and secure the future of the business
and the company’s employees both locally and internationally,” he said.
Farrow said they would further invest in a car assembling plant and a
Al-Futtaim initially operates as a trading enterprise, which is
established as an integrated commercial, industrial and a service
organisation and one of the leading business houses in the Gulf region.