Kotagala Plantations to amalgamate with subsidiary

Saturday, 5 September 2026 00:30 - - {{hitsCtrl.values.hits}}

Kotagala Plantations PLC’s board of directors has resolved to amalgamate the company with Rubber and Allied Products (Colombo) Ltd., (RAPC), a subsidiary that is 99.999% owned by Kotagala, the company disclosed to the Colombo Stock Exchange.

The board’s resolution, passed on 1 September, was made under section 239 of the Companies Act No. 7 of 2007 and remains subject to approval by Kotagala’s shareholders.

Under the terms of the amalgamation, RAPC’s 1,506,000 shares will not be converted into Kotagala shares. Instead, RAPC shareholders other than Kotagala itself — holders of nine shares in total — will be paid a cash consideration of Rs. 8.10 per share. The shares held by Kotagala in RAPC will be cancelled upon amalgamation.

Kotagala Plantations PLC will be the continuing company following the amalgamation, and its current board of directors will remain in place as directors of the amalgamated entity. The company said a circular to shareholders and a notice convening an Extraordinary General Meeting would be forwarded shortly.