Distilleries Corp of Sri Lanka to be suspended, Sept 03 owners to get Melstacorp
ECONOMYNEXT – Shares of Distilleries Corporation of Sri Lanka will be suspended, and owners as of September 30 will get four shares of Melstacorp in return, the firm said in a stock exchange filing.
Trading in Distilleries will be suspended until a new share offer restores a public float, the firm said.
Distilleries is effectively selling itself through a share swap to Melstacorp, currently a subsidiary, which will become its parent.
Distilleries will then become a 100 percent-owned unit of Meltacorp. Distilleries will then have share sales, with preference given to Melstacorp shareholders.
The firm has called a extraordinary general meeting on September 6 to get shareholder nod for the swap, which has already received court approval under Sri Lanka’s companies act.
Distilleries shares will remain suspended from October 03.