LOLC, Browns buy 20% stake in Sierra for Rs. 1.6 b

Friday, 29 October 2010 09:49 -     - {{hitsCtrl.values.hits}}

Lanka Orix Leasing Company Plc (LOLC) together with Browns Investments has acquired 20% stake each in Sierra Holdings and Sierra Constructions for Rs. 1.6 billion.

Sierra Holdings also owns 60% stake in the construction venture in addition to 58.1% in Sierra Cables and 51% in Agstar Fertiliser Ltd.

Sierra Construction is the market leader in telecom engineering as well as the water supply and drainage engineering sectors of the country. It also holds a major market share in civil electrical and road construction sectors.

“As in the case with the entry into the leisure sector early this year the LOLC Groups decision to enter this sector was primarily based on the expected growth in the construction sector fuelled by the post-war economic growth in the country,” LOLC said.

It said the partnership with Browns will also benefit the Sierra Group by way of having access to innovative financial restructuring and efficient financial solutions.

The announcement of the acquisition was made after the market was closed. LOLC share yesterday closed at Rs. 1,282, down by Rs. 1.40 whilst Browns rose by 90 cents to Rs. 249.60. On the other hand Sierra Cables saw 3.5 million of its shares traded peaking to a high of Rs. 4.60 before closing at Rs. 4.40, up by 20 cents.