UDA rejects Renuka Capital’s mandatory offer on On’ally

The mandatory offer made by Renuka Capital PLC to fully acquire On’ally Holdings PLC expired last week, with the largest shareholder, the state’s Urban Development Authority (UDA), holding on to its shares.

The UDA decided to keep its 47.62 percent stake in On’ally Holdings, which operates Unity Plaza in Bambalapitiya.

Renuka Capital triggered the mandatory offer clause in the Takeovers and Mergers Code last month when it bought a 12.25 percent stake of On’ally Holdings from the estate of the late Onally Gulamhusein, for a consideration of Rs.48 per share. 

This share purchase increased Renuka Capital’s stake in On’ally Holdings to 35.29 percent. 

Consequently, Renuka Capital accepted 6.96 percent of shares from other share owners via the mandatory offer at Rs.48 per share, while also purchasing 4.32 percent of shares in trading.

At the end of the mandatory offer, Renuka Capital’s stake in On’ally Holdings stood at 46.57 percent, becoming the second largest shareholder after the UDA.

On’ally Holdings, which has a net asset value per share of Rs.109.27, posted Rs.26.6 million net profit during the last quarter, from October to December 2017, recording a slight dip year-on-year, while the earnings per share for the quarter stood at Rs.1.52.