Hunas Holdings divests Rainforest Tea Factory for Rs 1.2 b

Friday, 3 January 2025 00:23 - - {{hitsCtrl.values.hits}}

Hunas Holdings PLC has announced the sale of subsidiary Rainforest Tea Factory Ltd., for a total consideration of Rs. 1.215 billion, consisting of approximately Rs. 256 million in cash proceeds and the transfer of approximately Rs. 960 million in associated debt liabilities.

Hunas Holdings holds 90% stake in the subsidiary and will be sold to Nanayakkara Appuge Udayanga Ranmal, (80%) and Rupasinghe Arachchige Nelka Rupasinghe (10%).

The Company said the disposal represents a strategic milestone in its focused expansion into the thriving leisure sector.

“This divestment aligns with medium- to long-term value creation to all stakeholders, whilst enabling a financial restructuring that will strengthen the group’s balance sheet enhancing its financial resilience,” Hunas Holdings said in a filing to the Colombo Stock Exchange.

“The transaction also sharpens the company’s focus on core growth areas, optimises resource allocation, and positions the business for sustained value creation,” it added.

Hunas Holdings’ Board obtained an independent valuation report from G.W.G. Abeygunawardene FRICS (Chartered Valuation Surveyor) dated 2 August 2024 to derive an independent opinion on the valuation. The valuation of Rainforest Tea Factory was estimated at Rs. 740.5 million.

The transfer of shares and completion of the transaction is expected to occur on or before 31 January, the company added.