Japanese firm eyes 51% stake in Expolanka
SG Holdings, a Japanese-based Asian freight and logistics company and part of the Sagawa Group, on Friday bought a 30 per cent stake in Expolanka Holdings and is aiming to raise that to 51 per cent by making a mandatory offer. The shares were sold at a price of Rs.10.70 each.
The Japanese firm has moved in a bid to further increase its foothold in the Asian region. SG Holdings Representative Director Nobuaki Kondo was quoted in a media release stating that “This acquisition will certainly help Sagawa to further increase and strengthen our foot print in Asia.”
The Kassim family members which control Expolanka with a 70 per cent stake retain 42.61 per cent ownership after Friday’s sale. Earlier the directors had 14.65 per cent (Sattar Kassim), 14.52 per cent (Osman Kassim), 14.52 per cent (Shafik Kassim), 14.52 per cent (Hanif Yusoof) and 14.40 per cent (Farook Kassim). The rest of the ownership is held by local corporates, individuals and foreign parties.
Stock market analysts said that the Kassim family has been looking for an international player in the global logistics market for a partnership to make the company stronger. “Being competitive internationally means being stronger and linking up with well-known players,” one analyst said.
Kassim family members have said in the past they want the company to focus on its core business. The company has been involved in the freight and logistics business over the last three decades and established itself as a premier provider of freight forwarding and supply chain management solutions in Sri Lanka and the Indian subcontinent.
Commenting on their latest move, Expolanka Holdings Group CEO/ Director Hanif Yusoof, who will continue in the same job, said, “This was a very big decision for the top five shareholders as they have been part of Expolanka; managing the business over 30 years, and they felt that this partnership was important for the long term success of the organization.”
On Friday, the principal five shareholders disposed of their shares totalling of 30 per cent of the issued share capital at a value of Rs.6.27 billion.
SG Holdings currently owns 24 locally-incorporated subsidiaries in 10 countries outside Japan, including China, Vietnam, and Singapore.