Aureos acquires 25% stake in Sunshine
Sunshine Holdings PLC a subsidiary of Watawala Plantations issued 3,
333, 333 new ordinary shares to Aureos South Asia Fund LLC by way of a
private placement at Rs 153 per share increasing a long term value and
creating a win -win situation for the shareholders.
Group Managing Director Sunshine Holdings V. Govindaswamy,
Chairman Sunshine Holdings Rienzie T. Wijetilleke and Director
CT Capital Channa Amaratunga after the signing of the
agreements. - Picture by Sumanachandra Ariyawansa
The funds that have been raised through the issue of new shares
totalling Rs. 10mn which is being invested into the company, Group
Managing Director Sunshine Holdings Ltd V. Govindasamy said yesterday.
He said, that the company is proud to have a strategic partner in Aureos
South Asia Fund LLC, by investing in a 25% stake in the company through
this private placement.
“By raising equity capital through a private placement, we have
achieved a premium to the current market share price,” he said.
Regional Managing Partner, Aureos Capital Limited Nissanka
Weerasekara said that they were impressed by Sunshine Holdings long and
successful presence in Sri Lanka and its solid financial performance.
He said the company looks forward to working together to help
Sunshine expand its operations and firmly establish the company as a
regional powerhouse.” The private placement of shares will help with the
settlement of a bridging finance loan of Rs 75,000, 000 raised to
purchase 10% of the equity share capital of TATA Communications Lanka
Limited and the company believes its investment will provide above
average returns by way of dividends in the medium term.
It also enables the company to diversify its revenue streams and
moderate its overall portfolio risk. Sunshine Holdings PLC is also to
purchase a further 5% of the equity share capital of TATA Communications
Lanka Limited, which
is estimated at a value of Rs 75, 000, 000. This would increase the
company’s investment in TATA Communications Lanka Limited from its
current holding of 10% to 15% once negotiations with regards to terms
and conditions are completed within the next six to 12 months. New
machinery for Sunshine Packaging Limited, a subsidiary of Sunshine
Holdings PLC, amounting to Rs 150,000,000 will also be purchased through
the funds raised via the issuing of shares.
The purchase of the new machinery will be carried out soon, helping
to further improve the company’s product portfolio and quality of
products. The company holds 66.44% of the equity share capital of
Sunshine Packaging Limited.
This will also help settle short term loans of Rs 200, 000, 000 of
both Sunshine Holdings PLC and Swiss Biogenics Limited, a company wholly
owned by Sunshine Holdings PLC within the next three months.