Al-Futtaim acquires majority stake in top Sri Lankan public company

Dubai: Al-Futtaim, the Dubai-headquartered automotive, retail, electronics and financial services conglomerate, announced a deal worth in excess of Dh300 million to acquire a majority shareholding in Associated Motorways plc (AMW), one of the 'crown jewels' of Sri Lanka's corporate sector.

Al-Futtaim notified the Colombo Stock Exchange (CSE) that it had paid in excess of Dh165 million to acquire the 51 per cent holding in AMW held by Associated Electrical Corporation plc (AEC), an investment holding company.

Al-Futtaim group's bought the stake in the listed tyre manufacturer to autos distributor wholly owned subsidiary Al-Futtaim Engineering (AFE), which later purchased a further 20 per cent of AMW's shares held by investment holding company John Keells.

In line with the CSE's takeover and mergers code the offer will go unconditional following official confirmation of acceptances above the 50 per cent threshold.

Bob Farrow, Senior GM Business Development, Al-Futtaim Automotive said: "This is a hugely positive development for Al-Futtaim, for AMW, for Sri Lanka, its economy, and for the company's employees."

"This acquisition is in line with the automotive development division's strategy, with the group's global strategy, and the direction in which CEO Mr. Omar Al-Futtaim wants to take the business. We see enormous potential to grow AMW's core business and to expand into new sectors and markets. There is strength and depth in the business and we see good reason to be confident about the future of Sri Lanka's economy. This acquisition gives us a foothold we fully intend to build on."