BIL to acquire Udapussellawa and Hapugastenne from Finlay in Rs.19 bn deal

LOLC Group’s strategic investments arm Browns Investments PLC (BIL) yesterday said it had entered into a transaction agreement with James Finlay Limited to buy the latter’s entire holdings in two listed plantation companies.

Accordingly, BIL will acquire 90 percent each of Udapussellawa Plantations PLC and Hapugastenne Plantations PLC for a total consideration of Rs.1.9 billion.

A filing by BIL said it will pay Rs.42 per Udapussellewa share, which closed at Rs.33.60 yesterday, up 24.91 percent or Rs.6.70, and Rs.28.30 for Hapugastanne share, which closed at Rs.21.70, up 24.71 percent or Rs.4.30.
As at September 30, 2021, the net assets per share of Udapussellewa stood at Rs.23.17 and net assets per share of Hapugastenne stood at Rs.11.13.

BIL said the two transactions will be executed shortly in compliance with the requisite rules and regulations of the Colombo Stock Exchange.

“A mandatory offer to the remaining shareholders of each company, as required by the Take-overs and Mergers Code will follow pursuant to the transactions,” the filing said.

Browns group in 2017 entered the plantations business acquiring FLMC Plantations, but divested them within three months of the acquisition to Damro Group.