Connect with us

Business

Nestle confirms need of approval of 75% of shareholders present at EGM for delisting

Published

on

Pannala factory

Members entitled to remain in company after delisting

Nestle Lanka PLC which has sought shareholder and regulatory permission to voluntarily delist its shares from the Colombo Stock Exchange (CSE) has summoned at Extraordinary General Meeting on June 30 where the board of directors will seek the approval of 75 percent of shareholders present for the delisting resolution.

“This may mean there can be a shareholder effort to jack up the exit offer price that has been made,” an analyst said. “This had happened on two previous instances.”

The circular published in the CSE website sets a price of Rs. 1,500 per share to be paid to shareholders willing to exit. Nestle has said that the exit price reflects a 58% premium on the daily volume weighted average market price over the 12-month period ended March 31, 2023, a 36% premium over the highest traded price over the last 12 months ended Mar. 31, 2023, and a 10% premium to the highest of the fair price range determined by the independent valuer.

Saying that the exit offer “represents a substantial premium over the fair price for the shares,” the directors have recommended the offer to its shareholders adding that those shareholders who wish to retain heir shareholding after the delisting would be entitled to do so.

The circular which does not set out the highest ever price commanded by the Nestle share since listing on the CSE says the exit price is 650% over the net asset value per share set out in the last interim quarterly financial statement of Dec. 2022.

Nestle Lanka PLC which was incorporated in Sri Lanka in 1981 has been listed on the CSE from 1983. The company’s controlling shareholder Nestle S.A. which has an effective shareholding of 91.95% of Nestle Lanka, is the world’s largest food and beverage company operating over 340 factories in 33 countries with its products sold in 188 countries.

Nestle which has been present in Sri Lanka for 115 years, prior to its incorporation as Nestle Lanka had a presence here as Ceylon Nutritional Foods Ltd.

The circular to shareholders says that Nestle has been actively seeking ways to have a more efficient operation here but the company envisaged challenges “in raising significant capital from the shareholders through capital injection to fuel growth and future success of the company as it would result in further dilution of the public shareholding and possible violation of minimum public shareholding requirements as defined in the listing rules.”

Analysts noted that there were two previous instances where dominant shareholders of companies seeking delisting went up substantially on the exit offer price first made to shareholders. This was in the case of AIA Insurance and Property Development PLC, the Bank of Ceylon subsidiary owning the bank’s headquarters building.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

People’s Bank drives push towards cash-lite economy

Published

on

Marking a significant milestone in Sri Lanka’s digital transformation journey, the National QR Payment Adoption Programme was recently launched with the objective of accelerating the country’s transition towards a cash-lite economy. The initiative aims to reduce reliance on physical currency by promoting the widespread use of QR-based digital payments, enabling individuals and businesses to conduct fast, secure and convenient transactions via mobile devices, said a release from the People’s Bank.

It said: As a leader in digital banking, People’s Bank proudly aligns with this landmark national initiative, reinforcing its commitment to building a digitally empowered economy. The Bank supports the programme through its flagship digital wallet “People’s Pay”, which offers a seamless platform for QR-based transactions and a range of everyday financial services.

In line with the programme’s objectives, customers can perform QR transactions without incurring additional charges, while merchants benefit from zero fees on transactions up to Rs. 5,000. To further encourage adoption, valuable gifts will be awarded to selected winners among LANKAQR users, enhancing engagement and promoting digital payment usage across the country.

People’s Bank’s participation reflects its ongoing digital transformation strategy, which has evolved beyond traditional online banking to deliver an integrated, lifestyle-oriented financial ecosystem. The Bank continues to set industry benchmarks by offering secure, efficient and user-friendly digital platforms, ensuring customers have uninterrupted access to banking services anytime, anywhere.

At the heart of this initiative is People’s Pay, a sophisticated digital wallet designed to streamline everyday financial transactions while catering to the evolving needs of the modern consumer. The application features a seamless self-registration process, comprehensive tri-language support, and secure storage of payment details, ensuring both convenience and security for users.

In addition, the People’s Pay app enables customers to make real-time bill payments and QR-based transactions with exceptional ease and efficiency. The facility to link multiple bank accounts further enhances flexibility and convenience, while the transaction limit provides users with greater financial control and improved security.

In a strategic move to bolster the national QR adoption program, the People’s Pay app now facilitates Peer-to-Peer (P2P) QR transfers. This functionality allows users to generate both static and dynamic QR codes, enabling efficient transactions without the need to disclose sensitive account information.

The National QR Payment Adoption Programme represents a critical step in advancing Sri Lanka’s digital payments landscape. By fostering fast, secure and transparent transaction methods, the initiative aims to ensure inclusive participation in the digital economy, empowering citizens across all regions and communities.

Continue Reading

Business

ANC Campus and Adelaide University launch new Australian study pathway for Lankan students

Published

on

ANC Campus has announced the launch of a formal articulation partnership with Adelaide University at Cinnamon Lakeside, Colombo, creating a clear progression pathway for Sri Lankan students seeking an Australian university degree.

Through this pathway, students can begin their university-level studies at ANC Campus in Sri Lanka before progressing to Adelaide University in Australia, subject to the relevant academic, English language, and entry requirements. By completing the first year through ANC’s Australian Diploma pathway in Sri Lanka, students can significantly reduce the overall cost of their Australian education journey, with estimated first-year savings of up to LKR 13 million when tuition and living expenses are considered.

The launch was attended by representatives of ANC Campus, Adelaide University, and the Australian Trade and Investment Commission (Austrade), alongside members of the media, students, parents, and invited guests. Austrade’s presence highlighted the continued importance of Australia-Sri Lanka education links.

Speaking at the launch, Dayan D. L. Fernando, Chief Executive Officer of ANC Campus, said the partnership gives Sri Lankan students a credible and well-supported route into Australian higher education.

“For over two decades, ANC has worked with international university partners to help Sri Lankan students begin their global education journey with the right academic preparation and guidance. This partnership with Adelaide University gives students a clearer route to an Australian degree and gives parents greater confidence in the pathway their children are choosing,” he said.

Fernando added that international education is one of the most important decisions a family makes, and proper guidance is essential.

“At ANC, our responsibility is to guide students correctly. We must help them understand the pathway, the requirements, the destination, and the opportunities ahead. ANC prepares students for the highest likelihood of success.

Continue Reading

Business

Union Assurance honours new batch of certified financial advisers

Published

on

Union Assurance PLC, Sri Lanka’s longest-standing private Life Insurer, recently hosted the SLIM Certified Financial Adviser Graduation Ceremony at its Head Office premises, recognising 38 professionals who successfully completed the programme, a milestone that reflects the company’s focus on building a highly capable and accredited sales force.

The Certified Financial Adviser programme, delivered in partnership with the Sri Lanka Institute of Marketing (SLIM), the National Body of Marketing in Sri Lanka, which was designed to elevate the expertise of the company’s high performing adviser force. Spanning 11 comprehensive modules covering areas such as Advanced Consultative Selling Skills, Negotiation Mastery, Digital Prospecting Techniques, and Emotional Resilience in Sales, participants underwent a rigorous learning journey that concluded with a formal assignment, bringing the full cohort to completion.

The programme reflects Union Assurance’s commitment to ensuring its advisers are positioned to serve customers with confidence, credibility, and genuine understanding of their needs; values that are central to the company’s purpose of protecting what matters most. The SLIM qualification also opens a structured educational pathway for graduates, with opportunities to advance through further nationally recognised certifications.

Speaking at the ceremony, Chief Agency Officer at Union Assurance, Imtiyaz Aniff stated: “We are pleased to recognise the dedication of our people who committed to this programme alongside their core responsibilities. The SLIM certification equips our advisers with the skills and credentials to serve our customers at a higher standard, and that directly supports the quality of advice we deliver. We look forward to seeing this cohort carry forward what they have learned and continue to grow in their careers.”

Union Assurance is a subsidiary of John Keells Holdings PLC (JKH), the largest conglomerate listed on the Colombo Stock Exchange, operating with over 80 companies in 7 diverse industry sectors. The Company has completed nearly four decades of success with a Market Capitalisation of Rs. 45.6 Bn and a Life Fund of Rs. 92.8 Bn as of end December 2025. Set to protect lives and enrich the well-being of all Sri Lankans, Union Assurance offers Life Insurance solutions that cover the health, investment, protection, retirement and education needs of Sri Lankans. With an island-wide branch network and a workforce that is over 3000-strong, Union Assurance continues to invest in people, products and processes with a customer-centric focus to be responsive to emerging changes in the Life Insurance industry.

Continue Reading

Trending