AMW won't sell more
Tilak de Zoysa to take over as Chairman :
Associated Motorways Plc (AMW) is not likely to take up the mandatory
offer of their 14 per cent shares out of an existing 29 per cent shares
with the divesting of its majority shares to Dubai based Al-Futtaim
Engineering, market sources said.
AMW's 14 per cent of shares are being held by Associated Investments,
Employee's Provident Fund, K.M. Wickramasinghe (deceased) and Cyril de
Zoysa Trust (deceased) and they are still undecided on what to do with
those shares/stakes, market sources said.
However, following the retirement of incumbent Chairman Ajitha de
Zoysa in two months, his brother, Deputy Chairman /Managing Director
Tilak de Zoysa will take up reins of the company as Chairman.
Further, Al-Futtaim Engineering Company is carrying out a
comprehensive due diligence on AMW. Al-Futtaim owns 71 per cent of the
company. The balanc 29 per cent shares including their 14 per cent is
worth more than Rs 16 million, stock market sources said.
Senior General Manager- Business Development Automobile Division Al-Futtaim
Engineering Bob Farrow told the Daily News Business that once the
comprehensive due diligence study is completed, they are planning to
appoint a Chief Executive Officer (CEO) for the company.
With this merger, the AMW office will be the Head Office of Al-Futtaim
in the SAARC region, which they are planning to make a motor hub in the
With the deal Al- Futtaim bought 71 per cent of the company for Rs 7
billion purchasing at Rs 174.50 per share. Al- Futtaim CEO Omar Al-Futtaim
is expected to visit Sri Lanka to study opportunities in the Sri Lankan
market, he said.
The Dubai based company which is one of the leading business houses
in the Gulf Region has a lot of plans to invest in Sri Lanka with the
acquisition of this five decades old family business considered to be
the 30th biggest business organisation in the country.
In line with the CSE's takeover and mergers it will be an
unconditional offer following the official confirmation to acceptance of
the above 50 per cent threshold. Among many synergies AMW and Al-Futtaim
Group will help to develop the Sri Lankan economy in the long term