LOLC Group consolidates its control in Brown & Company

The execution of a Share Sale & Purchase Agreement to acquire the balance50% holding in Diriya Investments (Pvt) Limited, the ultimate holding company of Brown & Company PLC, from Ajith Devasurendra for a consideration of Rs 1.32 billion, will result in LOLC Investments Ltd, a wholly owned subsidiary of Lanka Orix Leasing Company PLC (LOLC), acquiring the entire stated capital of Diriya Investments (Pvt) Ltd.

Brown & Co., PLC , the holding company of Browns Group of Companies has been a subsidiary of LOLC. Through its subsidiaries, Diriya Investments Limited controls 49.8 % of Brown & Company PLC. LOLC has an existing direct holding of 4.7 % in Brown & Company PLC.

The terms and conditions of the transaction requires LOLC Investments Ltd to make an initial payment of Rs.660 million to the seller with a further period of one year to settle the rest of the consideration. The senior partners of the leading law firm, Nithya Partners will function as the Escrow Agents to the above transaction.

The trading giant Brown & Company PLC, which has been in operation for 135 years, is a diversified conglomerate with operations in several key industry sectors including investments, plantation & agriculture, power generation, marine & manufacturing, Home & office solutions, environment & Pharma as well as travel & leisure.

The Browns group holds several leading local and global brands including: Exide Batteries, Tafe, Sifang, Massey Ferguson, Austrian Airlines, BG, Continental Airlines, Eclipse, Intervet, Oce, Olympus, Sharp, Eukanuba, Zagro, Yanmar Marine Engines, Ashok Leyland Marine, Pitney Bowes, Scandinavian Airlines, Makita, Maktec, F. G. Wilson, Yamasha, Daelim Royal Boiler Co, and MFG.

This strategic acquisition will create a strong platform for the LOLC Group to maximize the potential for growth.