Sri Lanka plantation buys tea exporter

Dec 21, 2012 (LBO) - Sri Lanka's Kotagala Plantations Plc, a tea plantations firm said it had bought Union Commodities (Pvt) Ltd, a tea exporter for 1,575 million rupees (12.
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4 million US dollars). No details were given how the purchase would be financed.

Kotagala Plantations said Union Commodities had been ranked the fourth largest tea exporters in the country and had been among the top five for several years.

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Started in 1985, the firm now had a tea bagging, purpose built storage and packaging facilities. Union Commodities also had a shipping and freight forwarding company.

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Union Commodities also exported sesame, cloves, pepper and other foods.



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Kotagala Plantations said the firm's founder Chanaka de Silva will continue to serve as chairman as will other directors.

But Kotagala will appoint its directors to "pursue synergies arising from its tea plantations business.

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Kotagala said it had 12 tea plantations and 11 rubber plantations.

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