Sri Lanka Expolanka sells subsidiaries, land for Rs1.2 bn
COLOMBO, Nov 18, 2014 (EconomyNext) – Sri Lanka’s Expolanka Holdings said it sold eight subsidiaries and land for 1,161 million rupees to a connected firm as part of a restructuring to focus more on its core logistics business.
The group, in which Japan’s SG Holdings acquired a controlling stake earlier this year, said in a stock exchange filing the buyer was Aberdeen Holdings, in which Expolanka director Osman Kassim was a majority shareholder and director.
It sold eight subsidiaries to Aberdeen Holdings for 740 million rupees. These were Expolanka Teas, Expolanka Plantation, World Spices & Teas, Neptune Holdings, Castle Commercial, Expolanka Pharmaceuticals, Bio Extracts and Saffron Foods.
Expolanka also agreed to sell its land located on Avissawella Road, a highway connecting the capital Colombo with outlying regions, for 421 million rupees to Aberdeen Holdings before end-November.
It said the divestments, made after a competitive and transparent bidding process, should bring improved returns and cash flows to the group.