Saturday 10 May 2014

Japan’s SG Holdings buys Expolanka Holdings’ 30% stake for Rs. 6.3 b

Japan’s SG Holdings has entered into an agreement with the top five shareholders of Expolanka Holdings PLC to buy a 30% stake in the company for a purchase consideration of Rs. 6.3 billion or $ 49 million.


The stake amounting to 586 million shares was done at RS. 10.70 each. Existing four directors Osman Kassim, Satter Kassim, Shafik Kassim, Farook Kassim shed 5% each from their existing stakes of 14.5% each whilst Group CEO Hanif Yusoof sold 7% stake. Buying broker for the deal was Nawara Securities (formerly New World Securities) and the selling broker was Asia Securities.

SG Holdings, the holding company for the Sagawa Group, is a leading logistics company in Japan with a presence in the Asian region. With the view of consolidating its operation in Sri Lanka and strengthening its global presence, SG Holdings intends to purchase majority shares of the company in total once the mandatory offer is approved.

Having triggered the SEC’s takeovers and mergers code with the 30% acquisition, SG announced a mandatory offer to remaining shareholders of EXPO at Rs. 10.70 per share. 

EXPO ended the day unchanged at Rs. 10.30 after hitting an intra-day high of Rs. 10.60.

In a statement Expolanka said this far-reaching and strategic deal would see both parties working towards growing and strengthening the company’s position in the global logistics industry.

It was also stated that Hanif Yusoof will remain as the Group CEO to guide the company in the direction of becoming a stronger force as a Sri Lankan company in the global arena.

Commenting on the move, Expolanka Holdings PLC Group CEO/Director Hanif Yusoof said: “With the Sri Lankan economy moving forward in the positive direction, there is a great potential for export growth as well as global expansion in the freight and logistics industry. In view of this, the partnership with SG Holdings will get us closer to our vision of being a strong freight and logistics player in the region.”

Yusoof added: “This was a very big decision for the top five shareholders as they have been part of Expolanka, managing the business over 30 years, and they felt that this partnership was important for the long term success of the organisation.”

Freight and logistics is a core business of Expolanka Holdings which has over the last three decades established itself as a premier provider of freight forwarding and supply chain management solutions in Sri Lanka and the Indian subcontinent. With a cluster of companies focusing on multi-modal freight and transport solutions and a global footprint spanning four continents and 18 countries, SG Holdings currently owns 24 locally-incorporated subsidiaries in 10 countries outside Japan, including China, Vietnam, and Singapore. The group has identified strengthening their overseas operation in the area of global freight forwarding as one of the core pillars.

Nobuaki Kondo, Representative Director of SG Holdings said: “We saw great value in Expolanka Holdings and especially the strength and the strategic fit in the freight and logistics business. This acquisition will certainly help Sagawa to further increase and strengthen our footprint in Asia.”

“This move further endorses and supports our groups’ strategy of focusing on our core business of freight and logistics. We also believe that the synergies that can be achieved through this new partnership will propel Expolanka towards achieving our objectives faster with a more focused and clearer vision,” Yusoof concluded.

Expolanka Holdings PLC is listed on the Main Board of the Colombo Stock Exchange as a diversified conglomerate having commenced operations in 1978.

With diversified interests in freight and logistics, travel and leisure, international trading and manufacturing and investments and services sectors, the group, has a global presence in over 18 countries and 45 cities. Expolanka Holdings PLC posted consolidated revenue of Rs. 50 billion in FY 12-13.



www.ft.lk

No comments:

Post a Comment