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RIL Property PLC Moves In On Panasian Power

 Saturday 10, July 2021

One of Sri Lanka’s most successful investors credited as the Founder of Lanka Bell and leading shareholder of Brown and Company Shankar Somasundarum has acquired the popular BreadTalk franchise.

Through SS Equity Holdings Ltd. The investor acquired the franchise from FoodBuzz Ltd., a subsidiary of RIL Properties PLC for LKR 245 million. The acquisition saw 108.18 million shares of FoodBuzz has been transferred to SS Equity by RIL.

Despite only having 10 outlets across the country the franchise was one of the most popular bakery chains in the island. As of the 31st of March FoodBuzz assets were worth over LKR 437.5 million which including property and equipment worth LKR 219 million and liabilities of LKR 177.5 million inclusive of LKR 110 million in lease liabilities.

The Co-vid 19 pandemic and the subsequent lockdowns resulted in the temporary closing of all BreadTalk stores island wide. FY21 saw the franchises revenue tumble 60% from LKR 413 million in FY20 to LKR 170 million in FY21. The operating loss rose from LKR 26 million to over LKR 85.5 million. The loss before tax also increased from LKR 42.4 million to LKR 185.4 million.

As the BreadTalk franchise changed hands the parent company RIL Properties PLC is shown to have invested in the renewable energy sector with its acquisition of the majority in Panasian Power PLC.

As of the 9th of July, 2021 RIL Property acquired 385,469,645 ordinary voting shares of Panasian Power PLC, one of Sri Lanka’s leading renewable energy providers for a total consideration of LKR 1,657,519,473.50. The acquisition amounts to 61.68% of voting rights at a price of LKR 4.30 per share making RIL the majority stakeholder of Panasian.

In compliance with Rule 31 (1) (a) of Company Take-over and Mergers Code 1995 (amended 2003) the mandatory offer for the remaining 239,530,355 ordinary voting shares has been made by RIL. The remaining 38.32% of the company shares is also to be acquired at LKR 4.30 per share.

NDB Investment Bank continues to act as the managers of the offer.

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