Asia Siyaka buys 55.87% stake in fertiliser start-up firm AgriOne for Rs. 178.5 m

Monday, 30 December 2024 02:40 - - {{hitsCtrl.values.hits}}

Asia Siyaka Commodities PLC has announced an initial investment of Rs. 178.5 million to acquire 55.87% stake in fertiliser start-up AgriOne.

It has entered into a Share Subscription and Shareholders’ Agreement with Andaradeniya Estate Management Ltd., Saman Buddhika Rajapaksha, and AgriOne Solutions Ltd., in this connection.

AgriOne is a start-up company in the fertiliser industry driven by a team of seasoned professionals in the field, with a go-to-market strategy to secure a place amongst the key players in the industry, leveraging existing business relationships of its major shareholders in the agriculture business.

Under the terms of the Share Subscription and Shareholders’ Agreement:

Asia Siyaka Commodities PLC will be investing a further Rs. 76.5 million in AgriOne on a staggered basis, resulting in a total investment of Rs. 255 million, represented by 255,000,000 shares of AgriOne.
Consequent to further investments to be made by the other shareholders of AgriOne, the said 255,000,000 shares will constitute 51% of the issued shares of AgriOne.
The company will be required to provide Corporate Guarantees up to a value of Rs. 1 billion to banks as security for import loan facilities to be obtained by AgriOne, which will amount to Related Party Transaction/s between the company and its subsidiary, AgriOne.

Accordingly, a further announcement as per the Listing Rules will follow.