The firm said it had bought 59 percent of Shaw Wallace Ceylon Ltd from Renuka Holdings Plc for 406 million rupees, through Renuka Consumer Foods Ltd (RCL), a fully owned unit.
A valuation had been done by Kreston MNS & Co, an accounting firm and Merchant Bank of Sri Lanka.
"RCL has ambitious plans to develop its product portfolio and distribution capabilities with its investment in Shaw Wallace Ceylon ltd and future investments in other food and beverage FMCG brands and businesses," the firm said in a stock exchange filing.
The firm said it will exit and investment in Coco Hotels and Properties (Pvt) Ltd, as it no longer fit its strategy and will get back 285 million rupees.Directors have resolved that both deals "do not constitute major transactions as defined by section 185 of the Companies Act No.7 of 2007," the firm said.
The firm was planning to sell 27 million ordinary shares for 35 rupees in the proportion of five new shares for every five existing, and 2.2 million non-voting shares in the same proportion at 28 rupees a share.
The firm now had 21.6 million ordinary shares and 1.8 million non-voting stock.
The share sale would bring in 1,008 million rupees of which 690 million rupees would be invested in RCL and 300 million rupees would be used to settle short term borrowings of another unit, Renuka Agro Exports Ltd.