ECONOMYNEXT – Sri Lanka’s index-heavy Expolanka Hpldings, which has a network of logistic units in US, EU, Asia and Africa; shares gained over 16 percent after it announced it is looking to acquire logistic companies abroad on expansion plans.
The shares closed gaining 16.19 percent or 22.75 rupees up at 163.25 rupees a share on Friday.
It previously closed at 140.50 rupees a share.
Expolanka on Thursday announced that it has submitted proposals in response to calls for expressions of interest for the acquisition of certain logistic companies in international markets keeping in line with its expansion plans.
“The Board wishes to emphasize however that such expressions of interest have not been accepted to date,” the firm said in a stock exchange filing.
“Moreover, any finality to such transactions, if they are proceeded with, will be dependent on standard preacquisition procedures such as due diligences as well as corporate and regulatory approvals.”
Following the news, Colombo Stock Exchange market that has been on muted sentiments shot up, boosted mainly by Expolanka.
Expolanka wants to strengthen it’s logistic footprint in the North American trade lane, in Europe and intra-Asia, it said in its 2021 Annual report.
It has generated a turnover of 648 million rupees out of the 1.6 billion rupees total turnover today.
The company’s market capitalization stands at 319 billion rupees.
Last year Expolanka was one of the top performing companies as freight and shipping prices steeply rose in the global market, the shares of the company too hit the roofs.
Over 99 percent of the total 694 billion rupees revenue generated in 2021 had been from its logistic business.