By: Staff Writer
Colombo (LNW): Singer (Sri Lanka) PLC, the leading consumer durables company with unmatched presence throughout the country is to amalgamate subsidiaries Singer Industries (Ceylon) Plc and Regnis (Lanka) Plc with the parent subject to regulatory and shareholder approval.
The proposed effective date of the amalgamation will be 31 January 2024, Singer Sri Lanka announced.
This parent company currently holds 58.29% stake in Regnis (Lanka) Plc and 87.72% in Singer Industries.
Singer said the proposed amalgamation will be carried out in furtherance of a proposal of the Singer group of companies to streamline the group structure by rationalising the number of operating companies.
This is with a view to: eliminating undue value leakages in optimising cost synergies.
Thereby this merger wil be enhancing profitability of the Singer group of companies and returns of the shareholders; minimising duplication of management functions.
It will be ensuring operational efficiency; and benefiting from stronger financial strength with an increased asset base.
The Board of Directors is of the view that this proposed amalgamation will enable the Singer group of companies to operationally and strategically drive planned value creation.
Since the activities of the three companies are interdependent, bringing them under one entity would eliminate complexity arising from transfer pricing and other duplication of costs.
The Board of Directors strongly believes that this proposal is beneficial to all shareholders of the three entities, who would be the beneficiaries of enhanced value creation.
The proposed amalgamation of the companies will allow the consolidation of the businesses of the three companies under Singer (Sri Lanka) PLC.
Subsequent to the proposed amalgamation, Singer (Sri Lanka) PLC would become the amalgamated company, with the particulars of Regnis (Lanka) PLC and Singer Industries (Ceylon) PLC being removed from the register maintained by the Registrar General of Companies.
Shares in the amalgamated company (i.e. Singer (Sri Lanka) PLC) will be issued to the minority shareholders of Regnis (Lanka) PLC and Singer Industries (Ceylon) PLC based on the fair values of the shares of the three companies determined based on an independent valuation carried out by Acuity Partners Ltd.
