Ambeon to sell 50.1% stake in Dankotuwa Porcelain to Ceyline for Rs.2.3bn

Ambeon Holdings PLC has entered into a share sale and purchase agreement with Ceyline Investments Ltd. to dispose the majority equity stake in Dankotuwa Porcelain PLC for Rs.2.3 billion.

“Ambeon Holdings PLC, the parent company of the Dankotuwa Porcelain PLC entered into a share sale and purchase agreement on 15th June 2023 with Ceyline Investments (Pvt) Ltd, a company that is engaged in business as an investment holding company, to dispose fifty point one percent  (50.1%) of its equity stake in Dankotuwa Porcelain PLC ,” Ambeon Holdings PLC’s parent Ambeon Capital PLC announced in a stock filing last Friday.

The transaction is subjected to completion of conditions stipulated in the share sale and purchase agreement.CT CLSA acts as the sell side advisor to the transaction. 

Dankotuwa Porcelain PLC is the leading manufacturer, exporter and supplier of table porcelain in Sri Lanka. Its products which are sold under its own brands of Dankotuwa and Royal Fernwood, with leading client brands such as Lenox, Macy’s, Portmerion, Dansk, Caskata, Oneida and NEXT are available in several countries including Australia, Greece, Germany, India, Italy, Japan, Kenya, Kuwait, Maldives, Moldova, Norway, Oman, Singapore, South Africa, Spain, Sweden, UK, United States, Uzbekistan and UAE.

 Ceyline Group has emerged as one of the most diversified marine companies in the country with over 30 years of experience in the marine industry.

Meanwhile, Ambeon Holdings this week also divested its entire 99.80 percent holding in Ceylon Leather Products to Elayathamby Thavagnanasundaram and Elayathamby Thvagnanasooriyam for Rs.650 million.
Dankotuwa Porcelain Group reported earnings of Rs.3.60 per share or Rs.585.3 million, up 198 percent year-on-year, on revenue of Rs.5.9 billion in the quarter ended March 31, 2023.

The net assets per share were Rs.19.40, up from Rs.16.17 a year ago. As of March 31, 2023,  Ambeon Holdings PLC held 72.51 percent stake in Dankotuwa Porcelain, followed by 10.72 percent stake held by Almas Holdings (Pvt) Ltd.
Dankotuwa Porcelain’s share price was up by 3.21 percent or 80 cents to Rs.25.70 upon market closure last Friday.