Financial Times

AEC offers to buy back shares

The Associated Electrical Company (AEC) on Wednesday offered a 'share buy-back' to shareholders, the second such transaction after what Diesel and Motor Engineering Company (DIMO) had a few months ago.

A company statement said AEC will call a shareholders meeting on October 20 to get approval to buy its own shares under Section 64 of the new Companies' Act. It said that if this is permitted the buy-back will be between October 21 and December 4.

The buy-back will be for 9.24 % of the company while the balance 90.76 % held by Commercial Agencies (Ceylon) Ltd and Ajita de Zoysa and Company Ltd. (both owned by Mr. Zoysa) will not be accepting the offer. The 9.24 % of AEC will bought at Rs. 1,800 per share.

The deal comes in the wake of the AEC in July selling off its majority stake in Associated Motorways Ltd to the Dubai-based AL Futtaim Group. It was unclear whether this was in any way connected to the buy-back decision.

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