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DIMO ops unchanged even after Hayleys exit

Deal to go through in three weeks:

The operations and marketing strategies of Diesel and Motor Engineering PLC (DIMO) will remain unchanged even after its holding company- Hayleys PLC exits its 28.8 per cent stake, billed to be completed in the next three weeks.

DIMO, Associate Company of Hayleys will remain unchanged as a corporate entity despite a possibility in the change in the name of just one Director.

The deal will go through in the next three weeks.” DIMO Chairman Ranjith Pandithage told Daily News Business yesterday.

However, the DIMO Chief was extremely tight lipped about the acquisition price, claiming that it was market and price sensitive.

The acquisition will be made by a consortium of the DIMO Directors, the second generation of the Founder Directors.

The DIMO consortium comprises Founder Chairman Pandithage Don Alexander’s three sons Ranjith Pandithage (incumbent DIMO Chairman) Mohan Pandithage (Director DIMO and Deputy Group Chairman Hayleys) Dahanath Pandithage ( Deputy Chairman / CEO- DIMO).

The consortium will also have the second generation of Founder Directors’ - Harold Algama’s son Ajit Algama, Cyril Algama’s son Sarath Algama and Stephen Peiris’s son Gladwin Peiris.

DIMO Chairman Ranjith Pandithage also attributed the core business of the company remaining unchanged even after the Hayleys divestiture, as Hayleys was not substantially involved in running the day to day operations of DIMO other than being a silent shareholder. “The only possible change might be Richard Ebell who is a Hayleys nominee Director on the DIMO Board but we might still keep him on the Board”, he said.

He also said that DIMO was seriously contemplating an Employment Share Ownership Plan (ESOP) after the acquisition but what was not decided yet was the percentage of the 28.8 per cent stake which would be going to the employees.

Responding to a question as to whether DIMO would be going in for a agency house and brand expansion after the acquisition, he said that there were no immediate plans in that direction yet.

“We are one of the few corporates in Sri Lanka which has a very robust brand presence of world renowned brands under one umbrella including Mercedes Benz, Tata and Bosch to name a few,” he added.

 

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