Expolanka Group to delist from Colombo bourse, focuses on international expansion

The Expolanka Group, with a history of over 45 years, announced on Friday that it intends to delist from the Colombo Stock Exchange.

Notwithstanding the earnings volatility in the recent past, the group has plans for Expolanka Holdings PLC (EHL) to focus on its core business and grow its international operations, it said in a media release.

In those circumstances, the capital requirements for EHL will become increasingly international in nature requiring it to raise capital from outside of Sri Lanka and in foreign currency, which borrowings would result in increased gearing and a high forex risk to the local minority shareholders, thereby impacting shareholder wealth.

The Board, having considered the need to expand its international operations and the resulting high gearing as well as the attendant forex risk occasioned as a result thereof and taking into account the interests of its minority shareholders, has approved a proposal to delist the shares of EHL from the Colombo Stock Exchange, subject to necessary shareholder sanction and regulatory approvals and clearances.

“We would like to thank our valued shareholders for their continued confidence in the Board and for the constant support extended to the Company over several years. We are confident that this proposal is in the best interest of our shareholders which provides an attractive and fair premium that will enable our minority shareholders to unlock value.  The company will continue to comply with Sri Lanka’s statutory reporting and compliance requirements and focus on delivering on its promise to the country and its people. As previously, post-delisting, the company will continue to navigate market complexities in a fast-revolving business environment while continuing to drive sustainable growth as it strives to gain market share as one of the top-tier logistics companies in the world,” said Hanif Yusoof, Director, Expolanka Holdings PLC

The company has transformed itself into a leading logistics company with an international presence spanning 39 countries. Being a supply chain specialist, the company is one of the leading service providers to the export industry in Sri Lanka and generates a significant share of its earnings in foreign currency.

Supported by capital infused by its parent company, SG Holdings Global Pte Ltd, as and when needed, the company has grown amidst turbulent times. SG Holdings Global Pte Ltd, which made its initial investment in EHL in 2014, currently owns 82.43 per cent of the shares of the company.