The Expolanka Group Focuses on International Expansion, Proposes to Delist from the Colombo Stock Exchange

Saturday, 02 March 2024 03:47


Businesscafe - With a history of over 45 years, the Expolanka Group today has transformed itself into a leading logistics company with an international presence spanning 39 countries.

Being a supply chain specialist, the Company is one of the leading service providers to the export industry in Sri Lanka and generates a significant share of its earnings in foreign currency.

With its global presence and international customer base as well as its multi-cultural work force, the Expolanka Group is one of the few Sri Lankan companies that has been able to expand globally.

Supported by capital infused by its parent company, SG Holdings Global Pte Ltd, as and when needed, the Company has grown amidst turbulent times.

SG Holdings Global Pte Ltd, which made its initial investment in EHL in 2014, currently owns 82.43% of the shares of the Company.

The challenging global macro environment and the accompanying geopolitical tensions have resulted in a significant bottleneck for the Group to continue with its expansion drive.

The recent financial performance of the company has been greatly impacted by these challenges and has consequently resulted in a period of earnings volatility.

Notwithstanding the earnings volatility in the recent past, EHL’s parent company has plans for EHL to focus on its core business and grow its international operations.

In those circumstances, the capital requirements for Expolanka Holdings will become increasingly international in nature requiring it to raise capital from outside of Sri Lanka and in foreign currency, which borrowings would result in increased gearing and a high forex risk to the local minority shareholders, thereby impacting shareholder wealth.

The Board, having considered the need to expand its international operations and the resulting high gearing as well as the attendant forex risk occasioned as a result thereof and taking into account the interests of its minority shareholders, has approved a proposal to delist the shares of Expolanka Holdings PLC from the Colombo Stock Exchange, subject to necessary shareholder sanction and regulatory approvals and clearances.

“We would like to thank our valued shareholders for their continued confidence in the Board and for the constant support extended to the Company over several years.

We are confident that this proposal is in the best interest of our shareholders which provides an attractive and fair premium that will enable our minority shareholders to unlock value.

The Company will continue to comply with Sri Lanka’s statutory reporting and compliance requirements and focus on delivering on its promise to the Country and its people.

As previously, post-delisting, the Company will continue to navigate market complexities in a fast-revolving business environment while continuing to drive sustainable growth as it strives to gain market share as one of the top-tier logistics companies in the world,” said Mr. Hanif Yusoof, Director, Expolanka Holdings PLC.

Expolanka Holdings is a globally acclaimed conglomerate based in Sri Lanka, known for its diversified presence in four pivotal sectors: logistics, leisure, IT, and food.

Guided by a forward-thinking mindset and a meticulously planned growth roadmap, EHL consistently challenges industry standards, further cementing its leadership in these dynamic sectors.

Last modified on Saturday, 02 March 2024 04:00