Softlogic buys Suzuki
View(s):Softlogic Holdings PLC is entering the annual 60 billion-rupee local motorcycles market after it purchased Suzuki Motors Lanka Ltd (Suzuki).
On Thursday, the company said in a stock market announcement that they entered into a Share Sale and Purchase Agreement on June 30 to acquire all of the shares in issue.
Suzuki is engaged in the distribution of Suzuki brand motor cycles and all-terrain vehicles and their spare parts and accessories under a distributorship arrangement with the Suzuki Motor Corporation of Japan.
A Softlogic official told the Business Times that the phenomenal growth of the motorcycle market after the civil war in Sri Lanka ended in 2009 was noticed by the company and that the purchase decision is a strategic decision for them. “The motorbike had replaced all private motor vehicles as the new family vehicle according to research done a couple of years ago. Motorbike ownership grew steadily during the past three years and we see a large opportunity,” he said.