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Monday May 10th, 2021
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Sri Lanka’s Watawala Plantations buys out partner in dairy unit

ECONOMYNEXT- Sri Lanka’s Watawala Plantations Plc has reclaimed full ownership in its dairy subsidiary, purchasing 31.75 percent of shares for 180 million rupees, the firm said.

Watawala Plantations repurchased the Watawala Dairy Ltd (WDL) shares at 6.21 rupees a share from Duxton Asset Management.
 
Duxton is a global dairy industry investor with a portfolio of over 700 million US dollars.
 
WDL began commercial operations in 2018 with an investment of 11.5 million US dollars.
 
It made a 234.6 million rupee loss in 2019, up from 90.8 million rupees in 2018.
 
The farm has 1,128 cows, imported from Australia and New Zealand.
 
WDL said it has been able to minimize diseases and resulting poor milk production of imported milch cows which have left many other farms in debt.
 
Watawala Chairman Sunil Wijesinha in 2018 said that the dairy project will become a viable business in another 3-4 years.
 
Duxton was providing Watawala with a herd manager and operations manager from South Africa for technical expertise in setting up the farm.
 
Watawala Plantations last week invested 1 billion rupees into WDL for capital restructuring and converting 450 million rupees of inter-company debt to equity. 
 (Colombo/Jun06/2019)
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