Sri Lanka’s Expolanka sells stake in Pulsar Shipping for Rs. 1.34 billion
The Morning: Expolanka Holdings PLC, through its wholly-owned subsidiary Expolanka Freight (Pvt.) Ltd., has entered into a share sale and purchase agreement with DP Logistics (Pvt.) Ltd. to sell its stake in Pulsar Shipping Agencies (Pvt.) Ltd. and Pulsar Marine Services (Pvt.) Ltd. for Rs 1.34 billion, as per a corporate disclosure.
According to Section 8 of the Listing Rules of the Colombo Stock Exchange (CSE), Expolanka said that through its wholly-owned subsidiary Expolanka Freight (Pvt.) Ltd., has entered into a share sale and purchase agreement on 15 July 2022 with DP Logistics (Pvt.) Ltd. to sell its entire stake in Pulsar Shipping Agencies (Pvt.) Ltd. and Pulsar Marine Services (Pvt.) Ltd. for an aggregate purchase consideration of Rs. 1,344,214,000.
The corporate disclosure by Expolanka said that the above disposal was undertaken after careful consideration and a strategic review of the business portfolio within Expolanka, with a view to continuing focus and attention on the core business of the group.
OSL take:
Sri Lanka’s maritime industry is on a growth path and the recent sale of Expolanka’s stake in Pulsar Shipping is indicative of the growing opportunities in the respective industry. The country’s strategic geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have all boosted the business potential in Sri Lanka’s maritime industry, especially in the ports, shipping and logistics sectors. The continuous growth recorded by Sri Lanka’s key ports in the western, southern, eastern and northern parts of the country have also increased the need for the development of supplementary infrastructure facilities in line with the overall economic expansions. Therefore, all these are indicative of the strength, growth as well as the business potential in Sri Lanka’s maritime industry. Foreign businesses/investors could therefore explore the growing opportunities in the country’s maritime industry, especially in the ports, shipping and logistics sectors. Also, foreign businesses could also look at forming partnerships or joint ventures with local businesses engaged in the industry.
| Article Code : | VBS/AT/26072022/X_1 |