AMW won't sell more

Tilak de Zoysa to take over as Chairman :

Hiran H. Senewiratne

Associated Motorways Plc (AMW) is not likely to take up the mandatory offer of their 14 per cent shares out of an existing 29 per cent shares with the divesting of its majority shares to Dubai based Al-Futtaim Engineering, market sources said.

AMW's 14 per cent of shares are being held by Associated Investments, Employee's Provident Fund, K.M. Wickramasinghe (deceased) and Cyril de Zoysa Trust (deceased) and they are still undecided on what to do with those shares/stakes, market sources said.

However, following the retirement of incumbent Chairman Ajitha de Zoysa in two months, his brother, Deputy Chairman /Managing Director Tilak de Zoysa will take up reins of the company as Chairman.

Further, Al-Futtaim Engineering Company is carrying out a comprehensive due diligence on AMW. Al-Futtaim owns 71 per cent of the company. The balanc 29 per cent shares including their 14 per cent is worth more than Rs 16 million, stock market sources said.

Senior General Manager- Business Development Automobile Division Al-Futtaim Engineering Bob Farrow told the Daily News Business that once the comprehensive due diligence study is completed, they are planning to appoint a Chief Executive Officer (CEO) for the company.

With this merger, the AMW office will be the Head Office of Al-Futtaim in the SAARC region, which they are planning to make a motor hub in the region.

With the deal Al- Futtaim bought 71 per cent of the company for Rs 7 billion purchasing at Rs 174.50 per share. Al- Futtaim CEO Omar Al-Futtaim is expected to visit Sri Lanka to study opportunities in the Sri Lankan market, he said.

The Dubai based company which is one of the leading business houses in the Gulf Region has a lot of plans to invest in Sri Lanka with the acquisition of this five decades old family business considered to be the 30th biggest business organisation in the country.

In line with the CSE's takeover and mergers it will be an unconditional offer following the official confirmation to acceptance of the above 50 per cent threshold. Among many synergies AMW and Al-Futtaim Group will help to develop the Sri Lankan economy in the long term perspective.