Hayleys Group buys Singer (Sri Lanka) for Rs 10.9 b | Sunday Observer

Hayleys Group buys Singer (Sri Lanka) for Rs 10.9 b

Hayleys PLC and its subsidiaries announced the purchase of 61.73% of shares of Singer (Sri Lanka) PLC, for Rs 10.9 billion, making it the single largest acquisition for a listed company in Sri Lanka in recent times.

This strategic acquisition by Hayleys PLC and its subsidiaries is anticipated to yield substantial opportunities for new business synergies within the Hayleys Group. Hayleys PLC and Singer (Sri Lanka) PLC collectively account for over 280 years of experience in the Sri Lankan market.

Asia Securities arranged and executed the country’s largest acquisition of a controlling stake in a listed company in history.

Asia Securities said in a statement that Retail Holdings has the option to sell its remaining 9.47% stake in Singer to Hayleys or its nominees at a total value of Rs. 1.7 billion within 12 to 15 months which, if executed, would result in a total transaction value of Rs. 12.6 billion.

This transaction surpasses the Rs. 10.6 billion market transaction in shares of Commercial Credit and Finance PLC, also executed by Asia Securities in December 2016. Until now, that transaction was the largest carried out on the CSE over the past five years.

Asia Securities was engaged by the seller on advising and arranging the transaction. The execution underlines Asia Securities’ capabilities in handling large and complex negotiated transactions, a company spokesman said.

Chairman of Asia Securities and Director of the CSE, Dumith Fernando said, “We feel fortunate to have been involved in bringing together two of the most respected corporate brands in the country. We are thankful to our clients who recognize our commitment to confidentiality and professionalism as key attributes in large strategic transactions. We hope to continue combining our international network with our on-the-ground industry insights in assisting corporate clients on strategic deals.”

Chairman and Chief Executive Hayleys PLC, Mohan Pandithage said, “This is a historic milestone for the Hayleys Group. It is in alignment with our Group’s growth-oriented approach to the Sri Lankan market, as we have been seeking a strategic partner to strengthen the Group’s retail sector. Leveraging on the diversity of Hayleys’ products and services portfolio and combining it with the time-tested and extensive expertise of Singer Sri Lanka, we anticipate unprecedented new business opportunities for both entities moving forward.”

He added, “It is the vision of Hayleys to offer enhanced lifestyles to Sri Lankans, with extensive ranges of innovative, high quality lifestyle products which are affordable to all segments of society.

The diversity of our products and services portfolio will now be driven to greater heights, opening doors to new business opportunities for both entities moving forward.

We will leverage Singer Sri Lanka’s brand and extensive retail network, with its strong customer base to pave the way for significant upscaling of the Group’s domestic retail sector presence.

Co-Chairman Hayleys PLC Dhammika Perera stated, “Given the strength of Singer Sri Lanka, one of the most iconic and trusted retail brands in the country, we believe that with this move, the Hayleys Group will be able to leverage and amalgamate the expertise and know-how of two corporate giants and boost the Group’s growth trajectory.”

When contacted by the Sunday Observer, a Singer official said that it was too early to reveal the future plans of the company.

Hayleys, the largest Sri Lankan conglomerate nearing its 140th year, has a global presence in 15 countries across all 5 continents. It is the most diversified conglomerate in the country.This acquisition creates a total of 16 Public Listed Companies under the Hayleys Group umbrella.

Established in 1878, Hayleys PLC is one of Sri Lanka’s largest, multinational business conglomerates driving a globally competitive business portfolio cutting across manufacturing, agriculture and services. The Group is internationally recognized as a leader in innovation and currently operates manufacturing and service facilities in Sri Lanka, Indonesia, Myanmar, Maldives, Thailand, Bangladesh and Singapore.

Its Marketing facilities are located in Australia, India, Malaysia, Italy, Japan, The Netherlands, UK and USA.The Group accounts for approximately 3.53% of Sri Lanka’s export income, and 3.4% of tea and 3.8% of rubber production.

It is one of the leading foreign exchange earners of the country, and sources 95% of its raw material manufacturing requirement locally, while providing employment to over 28,000 employees.

The Board of Directors of Hayleys PLC comprises Messrs Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Rizvi Zaheed, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Dr. Mahesha Ranasoma, Lalin Samarawickrama, Ruwan Waidyaratne, Hisham Jamaldeen , Aravinda Perera and Noel Joseph.