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.

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