Sri Lanka’s Watawala Tea enters purchases another local business for over Rs. 1 billion
Watawala Tea Ceylon Ltd., which is a fully-owned subsidiary of Estate Management Services Ltd., of Sunshine Holdings Group, has reportedly entered into a share sale and purchase agreement with the current shareholders of Daintee Ltd. to purchase a 100% shareholding for Rs. 1.7 billion.
The stake reportedly amounts to 10 million shares.
According to reports, Daintee is considered as the market leader in the sweet confectionary space.
The deal, which is the first mergers and acquisition post-Covid-19, is subject to the terms and conditions of the said share sale and purchase agreement.
Sri Lanka’s NDB Investment Bank has acted as the Financial Advisor to divesting shareholders while Capital Alliance had been the buy-side advisor to Sunshine Holdings.
OSL take:
The latest aquistion of an asset at billions of rupees by a local company is indicative of the strength and growth recorded by Sri Lanka’s private sector. It also shows the growth potential in Sri Lanka’s businesses. Sri Lanka boasts of huge business potential due to its geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka to expand operations in the region.
| Article Code : | VBS/AT/12082020/Z_3 |