Sri Lanka’s Watawala Plantations reclaims full ownership of Watawala Dairy Ltd
Sri Lanka’s Watawala Plantations Plc has reportedly reclaimed full ownership of its dairy subsidiary, Watawala Dairy Ltd (WDL), purchasing 31.75 percent of shares for Rs. 180 million.
Watawala Plantations has stated that it had repurchased the WDL shares at Rs. 6.21 a share from Duxton Asset Management.
Duxton is a global dairy industry investor with a portfolio of over US$ 700 million and WDL began commercial operations in 2018 with an investment of US$ 11.5 million.
The farm has 1,128 cows, imported from Australia and New Zealand.
According to the local media, WDL has said it has been able to minimize diseases and resulting poor milk production of imported milch cows which have left many other farms in debt.
Watawala Chairman Sunil Wijesinha in 2018 had said the dairy project will become a viable business in another three to four years.
Meanwhile, Watawala Plantations last week invested Rs. 1 billion into WDL for capital restructuring and converting Rs. 450 million of inter-company debt to equity.
OSL take:
Watawala Plantations Pls recently investment of Rs. 1 billion in Watawala Dairy Ltd and Watawala Plantations Plc has now reclaimed full ownership of Watawala Dairy Ltd. This is a clear indication of the growing business opportunities in Sri Lanka’s dairy industry. It also indicates the growth and strength of local companies. However, the government of Sri Lanka is also committed towards reaching self sufficiency in fresh milk in the country. Therefore, foreign businesses could explore opportunities in Sri Lanka’s dairy industry as well as explore the possibilities of forming partnerships with local companies to venture into the dairy industry.
| Article Code : | VBS/AT/10062019/Z_6 |