October 17, 2023 (LBO) - Colombo Stock Exchange listed United Motors (UML) has entered into a share purchase agreement for the purchase of 100% of Dutch Lanka Trailer Manufacturers Limited (DLT) for a price of LKR700mn.
The seller TRF Singapore (a Tata group firm) purchased DLT for a total price of approximately USD$17mn from 2009 to 2012. The current transaction indicates that TRF would be taking a significant loss on their investment.
No reasons were given in the UML press release for what appears to be a highly discounted price for DLT.
Incorporated in 1992, DLT is a BOI company engaged in the design, engineering, and manufacture of port and road trailers for the domestic and export market.