Sri Lankan firm Environmental Resources Investments Plc (ERI) wants to turnaround ‘ailing’ firms and is evaluating the take-over of over four firms in three different sectors.
“We are interested in firms which are ‘hurt’ due to heavy debt, heavy cost to financing or a loss of a major customer but which have a good business model,” Kosala Heengama, Director, ERI told the Sunday Times FT. He said ERI is looking to ‘heal’ such firms by managing their finances. “We are scrutinizing 30 projects at present and identified about six of them which need further due diligence. At present, a private IT firm, two small to medium hydro-power projects and a cement manufacturing firm are in our radar (to buy),” he said.
When asked whether ERI is interested in banks, he said that is not in the company's target area as the regulations prevent them from taking control of such entities. “We are interested in anything that has value and cashflows and also the potential to turn around. We are targeting firms in commodities, financial and ‘business to business industry’,” he said, adding that the end of the war has put the country on a better (economic) footing. “Investors are eyeing the country more favourably,” he said, adding that well-known investor Jim Rogers visiting the country recently add to the credibility of the (stock) market.
Last week, the company said it has finalized the acquisition of Environmental Resources Ltd, an unrelated company, incorporated in British Virgin Island and holding assets of equity and debentures focusing in the platinum mining industry in South Africa.
This company is an investment vehicle that will allow Colombo-based ERI to invest and take advantage of opportunities in South Africa’s mining industry. |
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