DFCC Bank supports Watawala Tea Ceylon Ltd’s leveraged acquisition financing of Daintee Ltd
View(s):DFCC Bank PLC recently completed the acquisition financing for Watawala Tea Ceylon Ltd, a 100 per cent-owned subsidiary of Sunshine Holdings, one of the most established corporate entities in Sri Lanka. Watawala Tea Ceylon Ltd acquired a leading Sri Lankan confectionery company Daintee Ltd, adding several brands to its portfolio including Daintee, Milady and Bensons.
The transaction was valued at Rs.1.7 billion. The term loan of Rs 1.6 billion was structured by DFCC Bank to finance the acquisition. DFCC has been involved in large scale transactions with both the private and public sector during the last 12 months and is a preferred bank for long-term financing for corporates, Watawala Tea said in a media release.
The acquisition of Daintee Ltdd comes at a time where Sunshine as a group looks to selectively expand its presence in Sri Lanka’s fast-growing FMCG segment by extending its portfolio beyond tea.