Singapore based Sri Lanka Opportunity Fund claims strategic stake in Sri Lanka’s Kelani Cables PLC
The Sri Lanka Opportunity Fund, a Singapore based equity fund, has taken a strategic stake in Kelani Cables PLC, the local media has reported.
The Sri Lanka Opportunity Fund is a US$ 50 million multi-asset class fund managed by VCG Partners and Ataraxia Capital Partners.
“The Fund has acquired a 4.5% stake in Kelani Cables PLC and hopes to make future follow on investments in the Company to enhance growth,” Ataraxia Capital Director and Co-Founder, Asanth Sebastian has been quoted as saying.
The Fund foresees growth in both the domestic cable market and the ability for the Company to increase its footprint in international markets in South Asia and Africa as a key reason for the investment.
Reports further state that the diversified product portfolio of the Company caters to a wide range of clients. The anticipated growth in construction and telecommunications sectors is a positive for the Company. It is also expected that the continuation of government infrastructure spending would provide tremendous growth opportunities to the Company.
Accordingly, the Fund intends to invest in similar successful Sri Lankan businesses that require further capital for the next stage of their growth.
The decision by the Singapore based fund to invest in Sri Lanka’s Kelani Cables PLC is indicative of the confidence of foreign equity funds on Sri Lankan businesses. The statement that the Sri Lanka Opportunity Fund intends to invest in similar successful Sri Lankan businesses that require further capital is an encouraging message for local businesses looking at expanding operations.
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