Major Expolanka shareholder SG Holdings Japan ups stake

• Picks up near 9% stake for Rs. 427 m; now owns 80% stake

Major shareholder Japan’s SG Holdings Global yesterday upped its stake in Expolanka Holdings PLC by a further 9%, investing Rs. 427 million, a move which analysts said reaffirms its commitment on Sri Lanka and the region and future growth prospects despite the impact from thee COVID-19 pandemic.

Expolanka saw 171 million of its share traded for Rs. 427 million of which 155 million shares were done at Rs.2.50 each via two crossings. Deals on Expolanka accounted for 40% of the CSE’s turnover yesterday. 

SG Holdings owned a 68% stake previously.  The share price of Expolanka Holdings increased by Rs 0.10 (4.00%) to close at Rs 2.60.

The seller was foreign shareholder Caceis Bank, Luxembourg Branch-BARCA Global Master Fund LP.  As at 31 March, its holdings were 173.8 million shares.

Last week Expolanka announced it managed to post its highest ever Group turnover of Rs. 103 billion during the 2019/20 financial year. It said a consistent performance coupled with a focus on its core operations enabled to post such a revenue, which was up 8% year on year. This was propelled by a 5% YOY growth in its quarterly revenue of Rs. 23.3 billion. 

The Group sustained momentum to generate a quarterly Gross Profit of Rs. 4.5 billion (+2% YoY), delivering an Annual Gross Profit of Rs. 19.1 billion (+6% YOY).  Exclusive of a one-time legal settlement during the year, Expolanka posted a Profit after Tax of Rs. 1 billion. However, the legal settlement in September 2019 at $ 6.75 million impaired the impact of earnings on profit. These circumstances resulted in a loss of Rs. 438 million for the year (Profit after Tax YTD).