CORPORATE

Linde Group acquires majority stake in Ceylon Oxygen

Linde AG offered to acquire all the shares in privately-held Ceylon Oxygen Limited, and the acceptance of the offer by the major shareholder, Europium Limited (a member of the private equity group, Actis), in respect of 95.4 percent of the shares in Ceylon Oxygen.

The offer, which has become unconditional, will close on November 12, after which Linde intends to acquire the outstanding minority shares held by shareholders who have not accepted the offer under relevant Sri Lankan legislation to give it 100 percent ownership of Ceylon Oxygen.

Established in 1936, Ceylon Oxygen Limited headquartered in Colombo is the leading medical and industrial gases player in Sri Lanka.

It is the only company that owns and operates an air separation plant in the country. "The Linde Group is a global leader in gases and engineering, and Asia is a key growth market for the Group.

The investment in Ceylon Oxygen will expand Linde's footprint in emerging markets in Asia, and provides the opportunity for us to tap into and participate in the long-term growth prospects in Sri Lanka.

Working with Ceylon Oxygen's experienced management team, we intend to build on and strengthen the company's solid market position," said Regional Business Unit Head for Linde South & East Asia. Sanjiv Lamba.

Chief Executive Officer of Ceylon Oxygen Limited, Niran Pieris said, "We are very proud of our association with Actis - especially for their belief in our management team and their commitment to the long-term growth of Ceylon Oxygen.

Today is the start of an exciting future for Ceylon Oxygen. As a member of The Linde Group, we will be able to leverage on Linde's innovations built over 130 years, technological expertise and strong market position in South & East Asia to accelerate our expansion plans and serve an even wider set of customers."

Ceylon Oxygen Limited employs 160 persons, has two manufacturing sites in Sapugaskande and Colombo, and four depots in Galle, Ratnapura, Kurunegala and Anuradhapura.

It produces liquid nitrogen and liquid oxygen at its Sapugaskande air separation unit, and its facility in Colombo houses a liquid carbon dioxide plant, a dry ice plant, a dissolved acetylene plant and a nitrous oxide plant.

SLIC pays Rs.11 m as claim settlement

Managing Director Sri Lanka Insurance Mohan de Alwis, hands over the cheque to Director Jafferjee Brothers Muffaddal Jafferjee. Consultant - Marine, Sri Lanka Insurance, R. H. G. Lewis, Principal Officer - Maxwell Insurance Brokers B. A. F. Mendis and Manager Marine Claims SLIC Manisha Gunasekara are also in the picture.

Sri Lanka Insurance Corporation (SLIC), honoured a claim settlement amounting to Rs.11 million under its Marine Cargo Insurance Policy for Exports, to Jafferjee Brothers.

Jafferjee Brothers has been a loyal customer of SLIC for more than 40 years, obtaining factories and cargo comprehensive insurances.

This claim was a result of an accidental damage to a container of export tea in bags while shipping to Russia in the Mediterranean Sea close to Egypt.

SLIC followed accurate claim assessing procedures, by a team of Russian surveyors represented by W. K. Webster and Company of London, to ensure that the customer receives a just and fair settlement.

Correct governance procedures, strong reinsurance arrangements and an asset base of over Rs71 billion, endorses SLIC as a strong insurer in the country.

16.5% increase in TFC deposits

The Finance Company (TFC), is back on its feet, having regained public confidence by increasing its new deposit intake to Rs. 530 million, an increase of 16.5 percent over its first quarter; and loan disbursements totaling Rs. 1,314 million, an increase of 42 percent over the previous quarter.

The company opened seven pawning centres at Horana, Anuradhapura, Kegalle, Dambulla, Elpitiya, Nikawaratiya and Nawalapitiya. Its land sales projects too showed phenomenal growth, with the number of blocks sold during the last three months increasing to 621. "TFC's prospects are further enhanced by the directive of the Central Bank to recapitalise the company, strengthening its capital and financial position", said Director/CEO TFC, Kamal Yatawara.

HPFL to raise Rs 350m from public issue

Hydro Power Free Lanka Ltd (HPFL), incorporated in the year 2000 and involved in hydro power development activities, is jointly owned, in equal proportions, by Pussellawa Plantations Ltd and Free Lanka Power Holdings(Pvt)Ltd.

A BOI approved entity; the company commenced com mercial operations in December 2003. HPFL launched an Initial Public Offering (IPO) of 32percent of its stake to the public and the issue opens on October 26.

The company will offer thirty five million (35,000,000) Ordinary Shares at an Offer Price of Rs. 10/- to raise a sum of Rs.350 million.

The minimum subscription is 2,000 shares and in multiples of 1,000 shares and will be listed on the Main Board of the Colombo Stock Exchange while Taprobane Holdings Ltd will be the managers to the issue.

Proceeds generated by the offer will be utilised for the construction of four more Mini Hydro Power plants (MHPs) during this year.

The Company operates two 1.6 MW plants, totaling to 3.2 MW, in Gampola and plans to add 5.37 MW of new capacity with the construction of the MHPs.