09 Jul, 201316:17:23
July 9, 2013 (LBO) - Sri Lanka's Hemas group is seeking legal advice following the purchase of JL Morrisons, a consumer goods firm, after an agency held by the distributor was terminated within days of the take-over.
A document offering to buy out minority shareholders of Morrisons by Hemas said that legal advice was being sought "with regard to the entitlement to claim compensation from breach of obligations" to either firm. Morrisons in a stock exchange filing said on June 14 that an agency that brought 13 percent of revenues will be terminated from August. A Hemas official said contractual clauses prevented them from revealing the name of the agency. Managing director of JL Morrisons, Trihan Perera said the agency was not Godrej as speculated by some. "We can’t disclose it yet due to contractual obligations," he said. "However we have already sought legal advice." Hemas Manufacturing, a fully owned subsidiary of Hemas Holdings bought a 71.5 percent of its voting stock and 50 percent non-voting shares in Morrisons for 1.71 billion rupees on May 30. Meanwhile in a related development Reginald Abeyawira and Nihal P De Alwis Samaranayake have resigned from the board of directors of JL Morrisons from July 05, a Colombo Stock Exchange filling said.