Nestlé Lanka announces plans to go private

Nestlé Lanka PLC yesterday announced its plans to delist its shares from the Colombo Stock Exchange (CSE).
The company said its board of directors at a board meeting held on May 3 resolved to initiate delisting of the company shares from the CSE, subject to shareholder and 
regulatory approvals.
A stock exchange filing by the company said it has made arrangements with the Nestlé Lanka parent, Nestlé S.A., to purchase the shares from the shareholders, who may wish to divest their shareholding in the company at a price of Rs.1,500 per share.
The Nestlé Lanka share last traded at Rs.1,120.25.
Nestlé S.A. owns 91.95 percent of the issued shares of Nestlé Lanka and the company’s public holding is 8.05 percent, distributed among 6,054 shareholders.
Nestlé Lanka, which has operated in Sri Lanka over 115 years, contributes to the livelihoods of thousands of Sri Lankan families, which includes 24,000 local dairy and coconut farmers and home-growers and over 800 direct employees.
“The company has been actively seeking ways to have a more efficient operation to enhance its contribution to the country even further. The delisting will also help the company strengthen its focus on core business activities, whilst upholding Sri Lanka’s statutory reporting and compliance requirements,” a press release issued by Nestlé Lanka said.

“We would like to thank our valued shareholders for continuing to place their trust in us and for the constant support offered over the years. We strongly believe that this proposal is in the best interest of our shareholders and assure that they would be rewarded with an attractive and fair premium,” said Nestlé Lanka Managing Director Bernhard Stefan.
“As in the past, we will work with communities and bring high-quality products to our valued Sri Lankan consumers, whilst doing good for the planet. We will continue to drive efficiencies whilst focusing on delivering on our promise to the country and its people,” he added.