Sri Lanka’s ACL Cables acquires controlling shares of Cable Solutions Pvt Ltd
Sri Lankan cable manufacturer, ACL Cables Plc, has reportedly stated that it has completed the planned purchase of 51 percent of shares in Cable Solutions Pvt Ltd for Rs. 480.7 million.
ACL Cables has stated that it has plans to purchase up to 75 percent of shares in Cable Solutions in partnership with a consortium of investors.
ACL Cables’ stock had closed 60 cents up at Rs. 56.50, in a market which is on a retreat.
Cable Solutions Pvt Ltd, which makes cables and wires for the electrical and electronics industry, has a factory at Flinth Industrial Park, in Kadawatha, which is located north of the country’s commercial capital, Colombo.
According to reports, it is the main plant of Cable Solutions Europe AB, in Sweden, which also has a plant in Kerala, India.
The Flinth Industrial Park is run by Swedcord Development, Sweden, and provides infrastructure amenities and support services for manufacturing firms, the local media has reported.
Media reports have further added that ACL Cables claims a 45 percent share of the local cable market while the ACL Group claims a 70 percent market share.
OSL take:
The acquisition of a business by ACL Cables is indicative of the growth and strength of the private sector in Sri Lanka. It is a further indication of Sri Lanka’s business conducive environment as well as the continuously improving ease of doing business environment in the country. Given the overall strength of Sri Lanka’s private sector, foreign businesses keen on doing business with the island could look at forming partnerships/joint ventures with local companies. In such a scenario, the foreign businesses could also exploit the benefits of the many trade agreements as well as trade concessions enjoyed by Sri Lanka.
| Article Code : | VBS/AT/23122019/Z_6 |