Lankem responds to allegations of non-payment

Lankem Ceylon PLC says only the largest foreign shareholder who had subscribed to Lankem’s mandatory offer in ACME Printing & Packaging PLC (ACME) has not been paid so far due to incomplete documentation and non-compliance with exchange rules.
In responding to reports on failure to settle payments to several minority shareholders of ACME Printing & Packaging PLC (ACME), who had subscribed to Lankem’s 
mandatory offer,

Lankem said payments for nearly all local shareholders have been settled, which amounts to 10.89 million shares representing 26.47 percent stake, as of end of last year.
However, it noted that it couldn’t make the payment for the 26.86 percent stake owned by Colvis Company Ltd, the largest foreign shareholder of ACME due to several reasons.
“…, due to incomplete documentation and non-compliance with section 4.4 of the Mandatory Offer document dated 28th of October 2021,” Lankem said in a stock exchange filing. 
However, On November 25, 2021, following a successful response to their mandatory offer received from the existing shareholders of ACME, registrar to the offer P W Corporate Secretarial (Pvt.) Limited in a stock filing announced that Lankem increased its ownership stake in ACME by 53.30 percent to 88.27 percent, including 26.86 percent stake owned by Colvis Company.
Further, Lankem continued to count Colvis’ stake in ACME in its portfolio despite failing to make the payment. 
The industry analyst noted that section 4.4 of the mandatory offer is irrelevant as the payments are made in Sri Lankan rupees. Further, Lankem has only requested the traditional documentation, when only Colvis Company inquired on the delay, according to industry sources.
Meanwhile, the Securities Exchange Commission (SEC) has already commenced an inquiry into the issue.