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George Steuarts makes a Rs. 3.50 per share offer for HVA Foods



George Steuart and Co. (GS), established in 1835, has made a voluntary offer to shareholders of tea exporter, HVA Foods PLC, to acquire all shares of that company at a price of Rs. 3.50 per share under the SEC’s Takeovers and Mergers Code.

This followed a deal between GS and HVA Lanka (Exports) Private Ltd., the controlling shareholder of HVA Foods, to purchase 51.1% of that company at the Rs. 3.50 price in a deal worth Rs. 118.65 million.

The holding company is selling down its 61.1% stake in HVA Exports and the offeror (GS) has offered to buy all shares in that company. They have said their offer is based on the majority shareholder’s agreement to accept the offer in respect of a controlling 51.1% of the company.

HVA shareholders have been told that once controlling interest is acquired the voluntary offer made to all shareholders will convert to a mandatory offer in terms of the SEC’s Code.

HVA has not published its annual report for the year ended Mar. 31, 2020. In a Stock Exchange filing made of Dec. 23, the directors said that the audit for the last financial year was could not be completed in time because of the difficulties that have arisen from of absence of staff unable to attend work on account of Covid 19 restrictions.

There was no disclosure on when the annual report could be expected but the directors drew attention to the fact that previous quarterly statements had been published on time and said that action will be taken to complete the audit as soon as possible.

According to the last published annual report for the year ended Mar. 31, 2019, there were group retained losses of Rs. 511.1 million on the balance sheet and the company incurred a loss of Rs. 367 million in that year.

In the last five years to 2019 a profit was earned only in 2018 when a profit of Rs. 44.1 million was published. The last annual report (for 2019) placed the net asset value of the company’s share at 91 cents.

The directors of HVA are Messrs. Rohan Fernando (chairman), Ms. Varuni Amunugama Fernando (non-executive), BSM de Silva (Independent non-executive) and D. Hettiarachchi (Independent non-executive)

The offeror, George Steuarts, originally an agency house managing plantations, is now into manifold activities including pharmaceutical import and distribution, tea, insurance broking and consultancy services, money broking, financial consultancy, travel, leisure, hotels (operates three hotels) and many more.

Mr. Dilith Jayaweera heads the group. He’s into television (Derana) and newspapers in addition to its other interests.

“The HVA share has move up from a range of three rupees plus to six rupees plus since the takeover news broke. The Rs. 3.50 offer price is below the ruling market price of six rupees plus so that it would be advantageous for shareholders to sell in the market than take up the offer,” a broker said.

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Newly developed Sathosa Motors Service Complex to service all vehicle brands



Sathosa Motors PLC and its new state-of-the-art vehicle service complex, is now serving not just Isuzu but also any brand of vehicle.

Pioneering automotive specialist, Sathosa Motors is the sole authorized agent for the world-renowned Isuzu brand, but the newly developed service complex will now undertake all kinds of services required for any brand of vehicle.

 The internationally trained specialists are ready to serve you at the Sathosa Motors Service Complex now on weekdays from 8.00 am to 5.00 pm and on Saturday from 8.00 am to 1.00 pm at No 25, Vauxhall Street, Colombo 02.

Sathosa Motors PLC guarantees its customers reliable and convenient service and will undertake vehicle inspections, periodic maintenance, body and under carriage washing, interior cleaning and beautification, engine tuning, error diagnosis, accident repairs, air condition repairs, and many more at a highly affordable rate.

In addition, genuine spare parts, as well as lubricants and industrial services are available at discounted prices at the Service Complex.

Sathosa Motors PLC aims to provide high quality services at all times and all services are carried out strictly under health guidelines due to the prevailing COVID-19 pandemic situation.

Sathosa Motors announces that it has decided to keep all branches of the Sathosa Motors service network open to continue to serve its customers.


(Sathosa Motors)

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CSE trading bullish despite rupee hitting historic low against dollar



By Hiran H.Senewiratne 

CSE trading activities were bullish despite Sri Lanka’s rupee registering a historic slump against the US dollar   at 202/205 to the one month dollar in mid morning trade yesterday, after opening at around 200/203.The stock market moved up, though, anticipating March quarterly results to be exceptional. This is expected to be particularly true of the Hayleys Group and Expolanka. Accordingly, investors seem to be re-entering the market after January, stock market analysts said.

Further, approval of the US $ 500 million Chinese loan and the fact that the Port City Bill has been tabled in parliament have lifted investor sentiment in a significant direction of the stock market, market analysts said. Amid those developments, both indices moved upwards, especially the All Share Price Index went up by 1.22 percent. The All Share Price Index rose by 92.35 points and S and P SL20 went up by 19.21 points. Turnover stood at Rs. 4.72 billion with four crossings. 

Those crossings were reported in JKH, which crossed 922,000 shares to the tune of Rs. 137.8 million, its shares traded at Rs. 149.25, Commercial Bank 950,000 shares crossed for Rs. 82.7 million, its shares traded at Rs. 87, HNB 155,000 shares crossed for Rs. 26.5 million, its shares traded at Rs. 132 and Ceylon Cold Stores 33,500 shares crossed for Rs. 20.1 million, its shares fetching Rs. 600.

In the retail market, five companies that mainly contributed to the turnover were, Browns Investments Rs. 793.6 million (123.1 million shares traded), LOLC Rs. 463.4 million (1.32 million shares traded), Royal Ceramic Rs. 442 million (1.2 million shares traded), Hayleys Rs. 442 million (five million shares traded), Dipped Products Rs. 372.3 million (6.2 million shares traded). During the day 197.3 million share volumes changed hands in 30480 transactions. 

The market was quite bullish from the beginning and LOLC Group companies led the market. It is said that LOLC contributed 25.5 points to the All Share Price Index. Browns Investments 9.8 points and Vallibel One contributed 8 points to the All Share Price Price Index while Commercial Leasing contributed six points.    

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‘Embark on that long-awaited getaway with Emirates and enjoy special fares’



Emirates is launching seasonal fares that enable aspiring globetrotters to plan exciting adventures around the world as well as for students preparing to travel overseas. With Emirates’ generous booking policies, customers have the option to lock in these special fares and extend ticket validity for up to three years, enjoying greater flexibility and confidence when planning travel during unprecedented times.

Travellers in Sri Lanka can look forward to flight deals on all routes in Emirates’ global network, with return fares starting at only Rs 68,700 in Economy Class or Rs 257,500 in Business Class. These special seasonal fares are available for bookings made from 13 to 26 April 2021, and are valid for travel between 16 April and 30 September 2021*.

Featured destinations and starting Economy Class fares include: US$ 342 (about Rs 68,700 at current exchange rates) to Dubai, US$ 654 (about Rs 131,300) to Milan, US$ 644 (about Rs 129,300) to Paris, US$ 1,117 (about Rs 224,200) to New York, US$ 1,303 (about Rs 261,500) to Toronto and US$ 966 (about Rs 193,900) to Nairobi.

Special Business Class fares start at US$ 1,283 (approximately Rs 257,500) to Dubai, from US$ 3,127 (about Rs 627,600) to Milan, US$ 2,860 (about Rs 574,000) to Paris, US$ 3,618 (about Rs 726,100) to New York, US$ 3,654 (about Rs 733,300) to Toronto and US$ 2,179 (about Rs 437,300) to Nairobi. All fares in Rupees are subject to the rate of exchange on the day of purchase.

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