Sri Lanka’s Hemas invests Rs. 3.4 billion to buy remaining 25% stake in Atlas
Daily FT: Hemas Holdings Plc yesterday announced the acquisition of a 24.9% stake of Atlas Axillia Company Ltd., for Rs. 3.4 billion.
With this strategic move, the Group now owns 100% of Atlas Axillia Company Ltd, expanding its market presence and reinforcing its position as a key player in the Consumer Brands Sector. The stake was held by Nirmal Anurudha Madanayake and the acquisition was done yesterday.
“Atlas is a market leader in the learning segment, this acquisition aligns with our long-term growth strategy and demonstrates our confidence in the company. We believe further integrating Atlas into our portfolio allows us to unlock greater synergies and value to all our stakeholders,” said Hemas Holdings Group CEO Kasturi Chellaraja Wilson.
Atlas Axillia Managing Director Asitha Samaraweera said: “Joining forces with Hemas has been a remarkable journey so far. With this acquisition, we look forward to further leveraging the expertise and resources of the Group to drive innovation and expand our product portfolio and offering to our consumers.”
Hemas initially acquired 75.1% of the stake in the family-owned Atlas in 2018 for Rs. 5.7 billion with the commitment to support the growth and expansion of the company. This acquisition of the remaining stake demonstrates the Group commitment to delivering on its promise to its shareholders, leveraging on the opportunities presented by the learning segment and the company’s ability to execute its growth strategy and capitalise on emerging market opportunities, while preserving company values.
Hemas is dedicated to achieving sustainable growth and is actively exploring significant investments in consumer and healthcare sectors in the next four years. The company remains focused on identifying and seizing opportunities that align with its strategic objectives, ensuring long-term success for the company and its stakeholders.
OSL take:
The expansion undertaken by local businesses and the investments carried out by them with the aim of divesting kn new ventures are all a clear indication that Sri Lanka’s economy is on a growth path once again. Sri Lanka’s economy has shown great resilience through the years and is once again on the recovery path after facing a global pandemic and an economic crisis that followed it. Despite the challenging economic conditions in the country in the past years, several key economic sectors indicated a growth while private sector businesses recorded profits. All these are indicative of the growth and business potential in Sri Lanka. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have also served to portray Sri Lanka as an emerging business destination in the South Asian region. Foreign businesses/investors could explore the expanding opportunities in Sri Lanka while also looking at forming partnerships or joint ventures with local businesses.
| Article Code : | VBS/AT/20230630/Z_1 |