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| Wednesday, 8 December 2004 |
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DPL's management staff in move to buy remaining RPC stake Dipped Products Limited (DPL), the Hayleys Group's rubber glove manufacturing venture yesterday informed the Colombo Stock Exchange that a group of management staff plans to acquire the remaining DPL shares held by Richard Pieris and Company Limited. This follows the divestiture last week by Richard Pieris of a tranche of 5.88 million DPL shares, representing 19.6 per cent of the capital of the company. These shares were purchased by Hayleys and its associates. In a letter to the CSE, Dipped Products said that over 110 of the company's management staff are in the course of finalising an agreement between themselves and Aureos South Asia Fund 1 LLC to set up a "special purpose vehicle" named DMH Capital Limited, to purchase 2,993,400 shares in the Company now owned by Richard Pieris and Company Limited at Rs. 117/50 per share. The Group reported a post tax profit growth of 66 per cent over the first half of 2003, on a turnover of Rs 2.9 Billion, which was up 18 per cent. The hand protection segment contributed Rs 2.2 Billion of this turnover (up 22.3 per cent) and the plantation sector represented by Kelani Valley Plantations Ltd., (KVPL) contributed Rs 779.2 million consequent to a growth of 6.3 per cent. Consolidated pre tax profit totalled Rs 290.7 million, reflecting a growth of 43 per cent, while post tax profit topped Rs 255.9 million, an increase of Rs 101.5 million over the corresponding period last year. KVPL more than doubled its post tax profit, from Rs 40 million to Rs 89 million, as a result of buoyant rubber prices and consistent prices for tea. DPL Managing Director N. G. Wickremeratne described the company's performance in the first half of the year as satisfactory in the backdrop of the cost overruns in the construction of its medical glove plant in Thailand. The completion of construction has been delayed by more than a month due to rain and DPL has had to seek the approval of the Central Bank of Sri Lanka to remit additional funds to meet a cost overrun of nearly 30 per cent, he said. |
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