Japan Sagawa’s deal with Expolanka boosts Lanka’s hub aspirations

Sri Lanka’s aspirations to become a shipping and aviation hub got a major boost on Friday with Japan’s second largest logistics firm SG Group acquiring a 30% stake in local industry leader Expolanka Holdings PLC for Rs. 6.3 billion.

Sagawa Global Logistics (SG Group) via its Singapore subsidiary SG Holdings has committed to buy a further 21% bringing the control to 51%. When it is implemented it will make a further investment of Rs. 4.4 billion at minimum or more if the mandatory offer results in an additional stake. The 30% stake amounted to 586 million shares and was done at Rs. 10.70 each with major shareholders shedding part of their stakes. Net asset per share of Expo at group level is Rs. 5.19.

Expolanka Holdings PLC is South Asia’s leading freight forwarder and its business spans over 17 countries in Asia, Africa,

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