Expolanka delists to grow int’l operations
Expolanka Holdings in a statement to the media said that 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.
It acknowledged that the recent financial performance of the company has been greatly impacted by these challenges and has consequently resulted in a period of earnings volatility.
Expolanka Group pointed out that given 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.
Therefore, the capital requirements for Expolanka Holdings will become increasingly international 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.
In a bid to help increase focus its expanding its operations internationally, Expolanka Holdings PLC on Friday announced its decision to delist from the Colombo Stock Exchange (CSE). The proposal is subject to necessary shareholder sanction and regulatory approvals and clearances.
“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 Expolanka Holdings PLC Director Hanif Yusoof commenting on the move.
The diversified conglomerate said that they are confident that this proposal is in the best interest of our shareholders. Supported by capital infused by its parent company, SG Holdings Global Pte Ltd, as and when needed, Expolanka has grown amidst turbulent times.
SG Holdings has intimated to the Board that it would be making an Exit Offer of Rs. 185 per share to all the other shareholders of the Company.
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