Stamford Press is floating a new company called Stamford Lanka (Pvt) Ltd to acquire LHB from Lake House Investments (LHI).
rnrnStamford Lanka will be jointly owned by Stamford Press (51 percent) and the associate companies of Mr. R S Wijewardene (49 percent), LHI told shareholders.
rnrnUnder the sale, LHI will transfer LHB
quote s goodwill (at Rs. 2 mn), the current Liberty Plaza outlet (at Rs. 10 mn) and the remaining trade stock at a mutually agreed price of around Rs. 2 mn to Rs. 3 mn to the new company.
rnrnStamford Press is also offering a three-year Rs. 5 mn loan carrying a 12 percent interest.
quote s present Chairman R S Wijewardene, will also be the chairman of the new company.
rnrnLHB has suffered a setback with the entrance of several new bookshops, mainly operating in the Bambalapitya-Colpetty area. The delays in meeting rapid competition came at a time when the company had embarked on a Rs. 8 mn refurbishment drive.
rnrnSince 1997, LHB has been depending on Chitrafoto to susta