Ceylon Leather Products buys 60% stake of footware exporter

Ceylon Leather Products Plc said in a stock exchange filling  that it had finalised an agreement to acquire 60% of the stated capital of M/s Palla and Company Pvt Ltd yesterday at a consideration of Rs. 120.9 million.

Palla and Company produces footwear for the export market and is situated in the Katunayake Export Processing Zone. The company has been incorporated in 2004 with Board of Investment approval.

The company’s revenue is Rs.90 million and based on its 2011 audited financial statements revenue was Rs.559 million with positive results, the company announced.  Ceylon Leather Products has also agreed to invest Rs. 298.6 million in 298,641 in fully paid non-voting convertible redeemable preference shares carrying a coupon rate of 8% with an option to convert after an year.