Sri Lanka’s CIC, Sunshine call off healthcare business merger
ECONOMYNEXT – Sri Lankan agrochemical group CIC Holdings and Sunshine Holdings group said they have decided not to proceed with a proposed merger of their healthcare businesses.
Both firms made separate announcements to the stock exchange of their decision.
CIC Holdings said it will continue to operate its healthcare business and introduce measures to maintain and improve its competitiveness, its stock exchange filing said.
Both groups announced the planned merger in March 2019, saying Sunshine would hold 60 percent of the shares in the merged business, while CIC would hold 40 percent.
The terms of the merger were under negotiations and subject to due diligence findings, the firms said at the time.
Sunshine’s share closed unchanged at 42 rupees while the CIC share ended 46.60 rupees, up 1.60.
Sunshine operates the Healthguard retail pharmacy chain, as well as trades in pharmaceuticals and medical equipment.
CIC Holdings imports pharmaceuticals and medical equipment, but also produces healthcare and personal care products locally, including the herbal remedy ‘Samahan’.
(COLOMBO, 15 July, 2019)