Mazagon Dock acquires 41.73% stake in Colombo Dockyard for Rs. 6.6 billion
Daily FT: India’s Mazagon Dock Shipbuilders Ltd. has acquired a 41.73% stake in Colombo Dockyard PLC following an allotment of shares arising from the unsubscribed Rights entitlement of Onomichi Dockyard Company Ltd.
Mazagon Dock said it acquired 164,916,229 fully paid ordinary shares of Colombo Dockyard on 19 January at a price of Rs. 40 per share.
The acquisition represents 41.73% of the issued share capital of Colombo Dockyard, which has total issued shares of 395,224,082. The total consideration for the transaction amounts to approximately Rs. 6.6 billion.
Mazagon Dock confirmed that it held no shares in Colombo Dockyard prior to the transaction and that its shareholding increased from zero to 164,916,229 shares following the allotment, resulting in a post-transaction stake of 41.73%.
The shares acquired by Mazagon Dock arose from the portion of Colombo Dockyard’s Rights Issue that remained unsubscribed by existing shareholder and parent Onomichi Dockyard Company Ltd.
OSL take:
Sri Lanka’s maritime industry has become a key attraction for foreign businesses/investors on the lookout for lucrative ventures in the country given its ongoing economic expansion and target of becoming a regional maritime hub. The country’s strategic positioning in the Indian Ocean near international maritime lanes and the strong trade ties enjoyed with many foreign countries have all helped boost Sri Lanka’s maritime industry and related sectors, especially ports, shipping and logistics. The ongoing expansion programmes in key ports in the country, the increasing maritime traffic recorded by these ports and the increasing interest among foreign businesses/investors in exploring business/investment opportunities in the industry indicate its growth and business potential. Given these positive trends, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka’s maritime industry and related sectors.
| Article Code : | VBS/AT/20260123/Z_4 |