Lotus Renewable Energy assisted by Singaporean company to increase shareholding in Sri Lankan plantation company
Lotus Renewable Energy (Private) Limited, which is part of Singapore’s G&G Group, has reportedly stated that it has increased its shareholding in the recently acquired Hatton Plantation Plc of Sri Lanka to 75.65 percent.
The local media has reported that Sri Lankan based Lotus Renewable Energy had bought 24.65 percent of Hatton Plantation (HPL) shares through a mandatory offer which closed on July 15, after it acquired 51 percent of the tea firm’s stake in May in a Rs. 1 billion deal.
Accordingly, HPL shares had been bought at Rs. 8.30 a share, compared to Rs. 6.90 a share price prior to the stock market fall after the Easter Sunday attack, when the share had traded at Rs. 6.40.
However, the acquisition has reportedly sent the stock price soaring to Rs. 7.90 on 28 May, when the deal took place.
The G&G Group has announced it has plans to expand agriculture operations in Sri Lanka, beginning with the acquisition of HPL.
G&G, which invests in environmentally sustainable agriculture and energy, is to look at establishing businesses that cater to both local and export markets of Sri Lanka.
OSL take:
Sri Lanka’s plantation sector is undergoing a facelift and development phase resulting in the opening of many business/investment opportunities. Many companies in Sri Lanka backed by foreign institutions are venturing into the local plantation sector due to the incentives offered and the business potential shown by the industry.
| Article Code : | VBS/AT/22072019/Z_8 |