Ravi Wijeratne announces mandatory offer on SMB Leasing

Rank Holdings fame Ravi Wijeratne yesterday announced a mandatory offer to acquire the remaining shares of SMB Leasing, after increasing his stake in the company over the 30 percent threshold, following a right issue.
Prior to the rights issue, Wijerane, who also functions as Non-Executive Chairman of SMB Leasing, had a 16 percent stake in the company.

The mandatory offer document filed with the Colombo Stock Exchange said that after the conclusion of a recent rights issue, Wijeratne’s total shareholding of the company increased to 64.5 percent. 

Accordingly, under the Takeovers and Mergers Code, Wijeratne became obliged to make a mandatory offer to purchase the balance voting shares in issue amounting to 2.3 billion, constituting to 35.5 percent, at 35 cents, it being the highest price paid by Wijeratne for the shares of SMB Leasing, 12 months preceding July 8, 2021.

Prior to the rights issue, high-net-worth investor Dr. T. Senthilverl was the single largest shareholder (voting shares) of SMB Leasing, with a 22.5 percent stake. 

SMB Leasing is a specialised leasing company established in 1992 and listed in the Colombo Stock Exchange.

The company operates only in Sri Lanka with the head office located in Colombo. The company is primarily engaged in providing finance leases, mortgage loans, personal loans and gold loans.  Wijeratne is Chairman of Rank Holdings, which has diversified interests including resorts, hydro and wind power generation, infrastructure and real estate development, container terminals, waste management services, plantations, media, insurance, consultancy services and gaming.