Agalawatta Plantations sets record straight on share sale to Browns

Agalawatta Plantations yesterday set the record straight in a stock market filing, confirming it had sold a controlling stake of 60.08% under Mackwoods in a transaction on 14 July to Browns Power Holdings, a subsidiary of Browns Group. According to the filing, Mackwoods Plantations had informed Agalawatta Plantations of the pending transaction, noting it considered divesting its shareholdings for a “considerable period of time due to the serious industry downturn over the past few years”.

Mackwoods Plantations is a wholly owned by two shareholders, one local and one foreign. “We are informed that the foreign investor from Malaysia has been a significant shareholder of Mackwoods Plantations since 1995, while the local shareholder is Mackwoods Ltd.” 

Agalawatta Plantations had been notified the two shareholders unanimously approved and executed an agreement under the provisions of the Companies Act for the sale of 15,200,000 shares. Mackwoods subsequently sold their shares on 14 July at the prevailing price of Rs. 20 per share on the Colombo Stock Exchange (CSE). 

The Browns Group presently owns the controlling interests of Pussellawa Plantations and Maturata Plantations, two of the largest tea and rubber plantations in Sri Lanka. 

“Agalawatta Plantations wishes to make this disclosure to clarify any reports or rumors pertaining change in shareholding,” it said in the stock market filing.