DIMO ops unchanged even after Hayleys exit
Deal to go through in three weeks:
Ravi LADDUWAHETTY
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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