Expolanka Holdings PLC, the largest listed company on the Colombo Stock Exchange, has announced its decision to go private, following a request from its principal shareholder, SG Holdings Global Pte Ltd. In a recent stock exchange filing, the company revealed its plans to delist its shares from the Official List of the Colombo Stock Exchange, subject to necessary shareholder and regulatory approvals.
Details of the Decision:
Board Resolution: The decision was made at a Board Meeting held on 1st March 2024, where the company resolved to initiate the de-listing process.
Purchase Offer: SG Holdings Global Pte Ltd, the majority shareholder, will purchase shares from interested shareholders at a price of Rs 185.00 per share. This follows the recent closure of the share price at Rs 150.50.
Rationale for Delisting:
Parental Support: The decision comes with the backing of SG Holdings Global Pte Ltd, which has been the principal investor in Expolanka Holdings since 2014, currently owning 82.43% of the shares.
Global Expansion Plans: The company aims to focus on its core business and expand its international operations, necessitating capital infusion from outside of Sri Lanka. This shift towards international growth would require raising capital in foreign currency, potentially impacting local minority shareholders.
Market Challenges: Expolanka Holdings has faced challenges in the global macro environment, compounded by geopolitical tensions. This has resulted in earnings volatility, prompting the need for strategic reevaluation.
Statement from Mr. Hanif Yusoof, Director, Expolanka Holdings PLC:
"We would like to thank our valued shareholders for their continued confidence in the Board and for the constant support extended to the Company over several years. We are confident that this proposal is in the best interest of our shareholders which provides an attractive and fair premium that will enable our minority shareholders to unlock value."
Expolanka Holdings PLC: A Diversified Conglomerate
With a history spanning over 45 years, Expolanka Holdings has established itself as a leading conglomerate in Sri Lanka, boasting a presence in logistics, leisure, IT, and food sectors. The company's forward-thinking approach and strategic growth initiatives have solidified its position as a top-tier player in these dynamic industries.
Post-delisting, Expolanka Holdings affirms its commitment to upholding Sri Lanka's statutory reporting and compliance requirements while focusing on delivering sustainable growth and market leadership in the global logistics landscape.
Details of the Decision:
Board Resolution: The decision was made at a Board Meeting held on 1st March 2024, where the company resolved to initiate the de-listing process.
Purchase Offer: SG Holdings Global Pte Ltd, the majority shareholder, will purchase shares from interested shareholders at a price of Rs 185.00 per share. This follows the recent closure of the share price at Rs 150.50.
Rationale for Delisting:
Parental Support: The decision comes with the backing of SG Holdings Global Pte Ltd, which has been the principal investor in Expolanka Holdings since 2014, currently owning 82.43% of the shares.
Global Expansion Plans: The company aims to focus on its core business and expand its international operations, necessitating capital infusion from outside of Sri Lanka. This shift towards international growth would require raising capital in foreign currency, potentially impacting local minority shareholders.
Market Challenges: Expolanka Holdings has faced challenges in the global macro environment, compounded by geopolitical tensions. This has resulted in earnings volatility, prompting the need for strategic reevaluation.
Statement from Mr. Hanif Yusoof, Director, Expolanka Holdings PLC:
"We would like to thank our valued shareholders for their continued confidence in the Board and for the constant support extended to the Company over several years. We are confident that this proposal is in the best interest of our shareholders which provides an attractive and fair premium that will enable our minority shareholders to unlock value."
Expolanka Holdings PLC: A Diversified Conglomerate
With a history spanning over 45 years, Expolanka Holdings has established itself as a leading conglomerate in Sri Lanka, boasting a presence in logistics, leisure, IT, and food sectors. The company's forward-thinking approach and strategic growth initiatives have solidified its position as a top-tier player in these dynamic industries.
Post-delisting, Expolanka Holdings affirms its commitment to upholding Sri Lanka's statutory reporting and compliance requirements while focusing on delivering sustainable growth and market leadership in the global logistics landscape.
