Nimal buys control of Mercantile Produce Brokers for Rs. 200 m

High net worth investor Nimal Perera yesterday bought control of well-established Mercantile Produce Brokers Ltd., (MPB) for Rs. 200 million.

The investment is on his personal capacity through his investment arm Don Wilbert Capital and marks his biggest personal move to date.

Nimal acquired the 76% stake from senior management of MPB who sold out and signalled an emphatic move towards produce broking in Sri Lanka. Those who sold out include MPB Chairman Sunil Udalagama, Managing Director Naresh Dhambawinna and CFO A.A.G. Vitharana.

MPB is among the top five produce brokers in the country with a strong clientele whilst it has one of the most modern warehouses in the country at Kadawatha.

Don Wilbert Capital has a subsidiary N Capital, which invested in Tangalle Bay Resorts.Analysts described Nimal’s move as a strategic investment marking his own moves and signals a major foray into produce broking. Through Royal Ceramics Plc, in which he is Managing Director, he dabbled in the produce broking industry temporarily through the acquisition of Asia Siyaka Commodities which was subsequently sold to Lanka Commodities Ltd.

Analysts speculated that with Nimal’s connection to Hayleys plantation business (he serves on the Board of Hayleys Plc) as well as Horana Plantations through Lanka Ceramics Plc, which RCL is the controlling shareholder of, MPB will have captive business.

Following the acquisition, Nimal has appointed two nominees to the MPB Board – Nishantha Wickremsinghe who hails from James Finlays and is currently Chairman of SriLankan Airlines as well as Royal Ceramics CFO Haresh Somashantha. MPB Director Samantha Dombanwela will be the new CEO.
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