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Thu, 07 May 2015 17:37:40
Sri Lanka Carson to expand east Asian palm oil business
06 Mar, 2009 17:52:59
March 06, 2009 (LBO) - Sri Lanka's Carson Cumberbatch group said it brought its Malaysian palm oil business under a fully owned Singapore subsidiary, Goodhope Asia Holdings, in return for stock.
The transfer is part of a strategy to enable the group to establish a stronger presence in the palm oil industry in its home base in south east Asia, the company said in a statement.

In share transactions done on the Colombo bourse at current market prices, Carsons sold majority stakes in four listed oil palm companies.

These were a 51.30 percent stake in Indo Malay, 53,93 percent of Good Hope, 50.18 percent of Selinsing and a 75.01 percent stake in Shalimar (Malay).

Carson said the transactions would not give rise to mandatory offers as Goodhope Asia Holdings is a fully owned subsidiary of the company.

Carson in turn will receive shares of Goodhope Asia Holdings to an equivalent value, the statement said.

"These transfers do not constitute an effective change in the shareholding structure of these companies since these four majority stakes still continue to be held by a fully owned subsidiary of the Carson group."

Smaller stakes of the oil palm companies held within some of the investment companies of the Carson group, namely Watapota, Weniwella and Mylands Investments were also transferred to Goodhope Asia Holdings on the CSE trading floor.

A group holding of shares in Carson's property subsidiary Equity One was also transferred to the parent firm as part of the same restructuring exercise.

"This strategy will enable the group to establish a stronger presence in the palm oil industry in its home base in south east Asia," the Carson statement said.

"The major industry players in the oil palm industry are based in Malaysia, Indonesia and Singapore.

"Through its regional plantation company, Carson would gain the opportunity to become a fully integrated player within the industry to support the extension of its current plantation business base," it said.

The plantation business of Carson covers an extent under cultivation of 80,000 hectares, crude palm oil processing capacity of 270 metric tonnes an hour and infrastructure to support logistics and supply chain management.

The firm said the largest players within the industry have ventures in downstream processing and value added products which it said is a natural extension to the upstream business, once economies of scale are established.

"A business base in the region would also permit Goodhope Asia to source strategic partners, financiers, buyers and suppliers with ease, thereby facilitating the rapid expansion of the business base and link up with industry groupings and policy forums."

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