AEC holds EAGM to discuss buy back offer

Hiran H. Senewiratne

Associated Electrical Corporation (AEC) will hold an Extraordinary General Meeting to pass a resolution to offer a buy back offer for owned shareholders of 267,452 shares held by them at a price of Rs 1,800 per share.

AEC annual general meeting will be held on October 20 at the Ceylon Chamber of Commerce auditorium, its sources said. Under the resolution, the company offers to purchase from its shareholders other than Ajitha de Zoysa and Company Limited and Commercial Agencies (Ceylon) Limited, Company Secretary M. Shiraj Razeen said.

He said, 51 per cent shareholding of AEC in Associated Motorways PLC (AMW), generated a new inflow of Rs 4,966,514,300. These funds have been currently invested in the money markets, until such time the Board is ready to make long term investments, so that the shareholders could be provided with the growth and return it has enjoyed in the past.

He said two major shareholders, Commercial Agencies (Ceylon) Limited and Ajitha de Zoysa and Company, two parties in concert together holding 90.76 per cent have informed the Board they would not accept the offer to purchase their shares.

Meanwhile, at the company’s Annual General Meeting (AGM), held on September 10, shareholders were of the view that the Directors should consider the possibility of the company buying back its shares as set out in the Companies Act 7 of 2007 with the current cash available with the company.