DSI Group’s Samson International Plc announced yesterday it intends to purchase assets of Okta PVC Lanka Ltd., at Ampegama, Baddegama for Rs. 137.1 million.
The purchase includes fixed assets comprising land, building, plant and machinery and office equipment.
The total liabilities Samson International will incur is Rs. 113.3 million and will pay the current owner Rs. 23.8 million.
In addition Samson International intends to buy Rs. 25 million worth of finish goods and raw material stocks from Okta PVC Lanka. Therefore the total direct payment to the current owner will be Rs. 48.8 million. Samson International deals with manufacture and export of unhardened vulcanised rubber products.
Okta manufactures and trades PVC pipes, fittings and other related products with SLS mark and has ISO certification too. The company was incorporated in March 2007 with current shareholder Ajith Wimalasuriya owning 90% and K.L.S. Malkanthi holding 10%. The company has over two acres of land and the factor spans 25,191 square feet.
“We are in the process of evaluating to purchase it soon,” a filing to the CSE by Samson International Director/General Manager Priyantha Abeygunawardana said.
DSI Samson Group and related parties hold over a 51% stake in Samson International whilst high net worth investor Dr. T. Senthilverl holds around a 29% stake.
In FY14, Samson International posted a pre-tax profit of Rs. 60.3 million, up by 18% from a year earlier. Post-tax profit was down by 6% to Rs. 52 million. Revenue was down 3% to Rs. 946 million.
Source : http://www.ft.lk/2014/07/03/dsi-group-buys-pvc-firm-for-rs-137-m/