– 90

  • Multinational Nestle S.A owning 91.95% announces delisting from Colombo Stock Exchange; to offer Rs. 1,500 per share to remaining 6,000 shareholders owning 8% stake
  • Pre-announcement, share price closed at Rs. 1,120.25; End-2022 NAV was Rs. 199.95 
  • Says move to drive efficiencies; assures to continue enhancing contribution to Sri Lanka

Nestle Lanka yesterday announced its decision to go private ending its 40 year stature as Public Listed Company (PLC) the Colombo Stock Exchange (CSE). The move was resolved by Nestle Lanka Board yesterday and is subject to shareholder and regulatory approvals.

Majority shareholder owning 91.95% Nestle S.A. will purchase remaining shareholding from those wishing to divest at Rs. 1,500 per share.

The public shareholding of 1983-listed Nestle Lanka is 8.05% held by 6,054 shareholders. As at 31 December 2022, net asset value per share was Rs. 199.95 (up from Rs. 157 in 2021).

The delisting was announced after the market closed with share price unchanged at Rs. 1,120.25. In FY22, highest price was Rs. 964.75 (down from Rs. 1,330 in FY21), lowest was Rs. 870 (versus Rs. 1,200 in FY21) and closed 2022 at Rs. 905, down from Rs. 1,215.50 in 2021.

In a statement Nestle Lanka said it has been actively seeking ways to have a more efficient operation to enhance its contribution to the country even further. “Therefore, our Board of Directors has authorised the proposal to delist Nestlé Lanka from the Colombo Stock Exchange, subject to necessary approvals and clearances. The delisting will also help the company strengthen its focus on core business activities, whilst upholding Sri Lanka’s statutory reporting and compliance requirements,” Nestle Lanka Managing Director Bernhard Stefan said.

“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,” he added.

Having thanked its valued shareholders for continuing to place their trust in the Company and for the constant support offered over the years, Stefan said “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.”

Having operated in Sri Lanka for over 115 years, Nestlé Lanka’s deep-rooted bond and commitment towards the country and its people remains strong. In this journey, the ‘Good food, Good life’ company has worked closely with its stakeholders to positively impact families, communities, and the planet. The company also furthered its investments in 2022, including the capacity expansion of its factory in Kurunegala, and initiated a biomass boiler project in 2023.

Nestlé Lanka 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, to whom it provides opportunities for professional growth and international training and developmental exposure.

Driven by its purpose of ‘unlocking the power of food to enhance quality of life for everyone, today and for generations to come’, Nestlé has nourished generations of Sri Lankan families with high quality food and beverage products from early childhood to old age. Having started its operations in Sri Lanka in 1906, today, Nestlé has become an integral part of Sri Lankan lives. The company manufactures over 90% of its products sold in Sri Lanka locally at their state-of-the-art factory in Kurunegala, employing strict safety and quality controls, the statement added.



Powered By



Hit Counter provided by technology news