Sri Lanka Finco exits apparel firm

Aug 01, 2011 (LBO) – Sri Lanka’s Finco group has sold a controlling stake in listed Orient Garments to PC House Holdings, an unlisted firm and its chairman Mohamed Rishan for 600 million rupees, officials said. Finco vice president Priyanjith Weerasooriya said the group wanted to focus on the leisure sector.

The group is building two resorts in the East of the country following the end of a 30-year war and has a third resort up and running in north central Sri Lanka.

A 51 percent controlling stake made up of 28.5 million shares were sold at 21.50 rupees on the floor at 13 rupees below the market in a negotiated deal.

PC House Holdings, an unlisted firm, which is the parent of listed PC House had bought 12 million shares and its chairman Mohammed Rishan said he bought 16 million shares.

Rishan said he was in talks with a Bangladesh based group which was in apparel and pharmaceuticals with which his firm had links, for possible expansion opportunities.

Orient Garments was recently listed by introduction on the Colombo bourse and had been actively traded with the founders gradually selling down their stake.