Cargills Group in major reshuffle involving Food City business
View(s):The Cargills Group, in a major announcement on Wednesday, said that Cargills (Ceylon) PLC, established in 1844, will cease to be involved in retail operations of the Food City business and henceforth function as a holding company giving strategic directin to the group.
Under the changes, as explained to the Colombo Stock Exchange, Cargills Food City and Cargills Food City Express (in IOC outlets) brands will be transferred to a fully-owned subsidiary – Cargills Foods Pvt Ltd under a board of directors’ decision taken on August 28.
Following this restructure, this company will handle all the retail operations of the 219 retail locations while Cargills (Ceylon) PLC will continue as a purely investment holding company “for retail, food manufacturing, brewery, leisure and property development, and strategic investments sectors of the group”.
The company said that the proposed transaction is subject to shareholder approval as this will result in substantially altering the nature of the business of the company and “will thereby fall within the definition of a major transaction’ under the Companies Act. An EGM (extraordinary general meeting) will be held on September 20 to seek shareholder approval of the move.
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