ERI to focus primarily on Lanka; to sell stake in BVI-based ERL

Friday, 12 August 2011 03:33 - - {{hitsCtrl.values.hits}}

Environmental Resources Investment Plc’s Board of Directors has resolved to sell the stake in BVI-registered Environmental Resources Ltd., (ERL) to primarily focus on investments in Sri Lanka.

ERI has to date paid three tranches for 23% stake totaling Rs. 2.05 billion or $ 18.1 million. The disposal is subject to regulatory approval.

The purchaser of the stake will be Photo Global Ltd. BVI and the ultimate beneficiary being Lionhart Investments Ltd. which is also the major shareholder of ERI Plc. Expected sale price is around $ 19.7 million with a capital gain of around $ 1.7 million for ERI.

“The decision to dispose was made based on the improving business climate with the overall local economy as the Company primary focus is on local investments,” ERI Director Dr. Kosala Heengama said in a filing to the Colombo Stock Exchange.