Cargills announces group-restructuring exercise

Cargills (Ceylon) PLC (CCP), which has interests in retail, food & beverage manufacturing and distribution and restaurant sectors, announced a group restructuring exercise yesterday.

“Significant growth and expansion in these sectors has necessitated a reorganisation of the sector and their sub-sectors into separate growth driven units employing focused management and prudent resource allocation,” a filing by CCP said.

Accordingly, shareholding in some subsidiaries will be transferred between CCP and its subsidiaries with a view to achieving an optimum group shareholding structure, which would achieve the overall objectives of the group.

“No share transfers will be made outside the CCP group,” the filing noted.

It further said the reorganization will be completed during the third quarter of the financial year 2021/22.

CCP along with parent C T Holdings in October also announced plans to set up a real estate subsidiary company by transferring properties designated for development and other unlisted real estate and property development subsidiaries under the new subsidiary. 

It has also been decided to make an equity infusion of Rs. 550 million by C T Holdings into the said subsidiary.