Lotus Renewable Energy Ltd. (LREL) yesterday bought 51% controlling stake in Hatton Plantation PLC for Rs. 1 billion. The deal was done via a crossing transaction at Rs. 8.30 per share. The seller was Estate Management Services Ltd. (EMSL), which originally held a 75.65% stake.
Following the move, LREL will make a mandatory offer to remaining shareholder of Hatton Plantation Ltd. NDB Investment Bank (NDBIB) acted as the “Sole Transaction Advisor” for this deal.
EMSL has given an undertaking to LREL that it would not accept the mandatory offer. However, this is subject to divesting a further quantity of shares held by EMSL in HPL by accepting the mandatory offer, in the event LREL fails to secure adequate acceptances by minority shareholders, so as to ensure that LREL holds 179 million shares or 75.65% stake post-mandatory offer.
LREL has also granted EMSL the right and entitlement to sell (i.e. a Put Option) all or part of the remaining 58.3 million shares held by EMSL to LREL within a period of not less than 3 months from completion of the mandatory offer at Rs. 8.30 per share.
Sunshine Holdings PLC’s Group Managing Director Vish Govindasamy, commenting on the Company’s announcement regarding the divestiture of Hatton Plantations PLC from Sunshine Holdings Group, stated: “It was in line with the Group’s strategy of taking a significant step in refocusing our footprint in healthcare and consumer segments for strategic specialisation, especially in the branded tea segment where we will continue to invest significantly in our brands — ‘Watawala Tea’, ‘Zesta’ and ‘Ran Kahata’.”
Lotus Renewable Energy Group (LREG), a multinational renewable energy company with its operations across India, Singapore and Australia, have over two decades of experience in managing several plantation estates in Sri Lanka. “Hence we made sure our divestiture will be to an experienced business entity, and we are confident they will continue to develop the plantations as we have done. Sunshine Group will continue to work hard in expanding their businesses while maintaining a reliable and responsible diversified business conglomerate,” Govindasamy added.