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DIPPED PRODUCTS MANAGERS WILL OWN 50% OF SPV BUYING IN TO THEIR FIRM
-28-01-2005-
A special purpose vehicle (SPV)
set up between a venture capital company, Aureos South Asia Fund 1 LLC
and over 110 members of the management staff of Dipped Products PLC (DPL) will this week acquire the balance\e Richard Peiris shares of DPL
with the deal expected to be completed on Wednesday.
The SPV named DMM Capital
Limited will be 50% owned n\by Aureos with the DPL employees owning the
other 50%, well informed sources indicated. It was expected that Aureos
would help the DPL managers buying in to DMH to raise the necessary
funds for their investment. Richard Peiris will complete divesting its
total holding of DPL once DMH Capital acquires approximately 7% of DPL
later this week.
Earlier the Hayleys group
and two European buyers purchased 19.7% of DPL from Richard Peiris with
Hayleys absorbing 3% of the equity (898,000 shares) while its subsidiary
Volanka Limited took 7.9% (2.37 mn shares). The European buyers Delta
Plus Group and Proma Overseas S.A. each took 4.4% (1.3 mn. Shares each).
Richard Peiris was paid Rs. 117.50 pert share, a premium on the market,
although DPL shares have subsequently tradeon the CSE at a lower Rs. 110
price. DPL has been a strong performer with a ho\high dividend and bonus
share issue tack record. In addition to the hand protection segment of
it’s business. DPL is also controlling share holder of Kelani Valley
Plantations Limited whose rubber portfolio has been doing well thanks to
the recent bounce in prices. However, the recent age increase for
plantation workers would impact on profits from October this year it is
expected.
DPL which is one of the world’s biggest non-medical glove producers is
compiling a factory in Thailand to break into the medical glove sector.
This sector will be commisional either later this year or in January,
DPL CEO N.G. Wickramarathne said.
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