Sunshine Holdings, Wilmar of S’pore in talks to boost Watawala biz

Friday, 30 November 2012 03:13 - - {{hitsCtrl.values.hits}}

Sunshine Holdings Plc and related parties are in discussion with Singapore listed and Asian agri business giant Wilmar Group to boost business of Watawala Plantations Group.

Involving several connected companies, Sunshine said the Board of Directors has entered into discussions with Pyramid Wilmar Ltd., a company incorporated in Sri Lanka and engaged in the agri business on exploring the possibility of entering into a joint venture.

The latter, if it goes through, will enable Estate Management Services, which controls Watawala Plantations Group, to obtain Pyramid’s expertise and knowhow in the management and operation of plantations and to use its distribution network to market and promote products of Watawala Plantations Group.

Pyramid is a joint venture owned by Wressless Holdings Ltd. of Singapore and Wilmar International Ltd. (Wilmar) of Singapore. Wilmar is engaged in business of oil palm cultivation, oil seed crushing, sugar milling and refining and has extensive distribution network covering over 50 countries such as China, India, Indonesia, Brazil and Russia.

Sunshine Holdings and Tat Global Beverages Ltd. (Tata) currently holds 51% and 49% respectively of the shareholding of Estate Management Services, which in turn holds 53.75% of Watawala Plantations Plc and 100% of Watawala Marketing Ltd.

“A further announcement will be made in the event discussions are successfully completed to the mutual satisfaction of the company, Tata and Pyramid and an agreement in principle is reached between the parties,” Sunshine Holdings said in a filing to the CSE.