Price for Vallibel One 50% stake in Orit Apparels is $ 7.26 m

Saturday, 2 July 2011 01:24 - - {{hitsCtrl.values.hits}}

Vallibel One Ltd’s (VOL) decision to acquire 50% stake in Orit Apparels Ltd., will cost US$ 7.26 million as per its filing to the Colombo Stock Exchange yesterday.

Of the amount, VOL will be paying $ 3.5 million as an advance with the balance to be paid over a two year period.

In the filing, VOL said that on 30 June it entered into an agreement to acquire 24,416,299 ordinary shares amounting to 50% of Orit Apparels Ltd., for $ 7,262,500 subject to relevant regulatory approvals. The date of closing of the transaction is 4 July. The Daily FT yesterday exclusively reported the 50% stake acquisition of VOL in Orit, which specialises in the export of denims. It was founded by industrialist Channa Palansuriya with a 30% stake and the US collaborator owning the balance. VOL is buying the 50% stake from the foreign investor with Palansuriya acquiring 20% thereby increasing his stake to 50%.

Orit Apparel, a Board of Investment approved venture has a turnover in excess of US$ 80 million and over 6,000 employees spread across eight plants producing 822,000 pieces per month. Orit also positions itself as Sri Lanka’s number one denim specialist manufacturer.