Hemas Holdings Plc’s subsidiary Hemtours Ltd. has entered into a share sale and purchase agreement with Acorn Partner Ltd. for the sale of 80.1% stake in Forbes Leisure Services Ltd. for Rs. 201 million.
Acorn is owned by Malinga Arsakularatne, an Executive Director of Hemas Holdings, and members of the senior management team of the subsidiaries of Forbes Leisure Ltd. Hemas will retain a 19.9% minority stake.
Since the announcement, Arsakularatne has stepped down from the Boards of Hemas and several listed subsidiaries.
Forbes Leisure Services consists of businesses operating in outbound and inbound travel and airline representation.
In a filing at the Colombo Stock Exchange, Hemas said the transaction excludes the Emirates Airlines agency which will be positioned as a core component of Hemas’ mobility sector which includes businesses in integrated logistics and the liner shipping agencies of Evergreen Line and Far Shipping Line.
Hemas said that through these divestments, it is increasing its focus on building and strengthening its market leading position in the consumer, healthcare and mobility sectors.
Separately, in a statement to the press, Hemas said that in line with Hemas’ portfolio strategy of focusing on growing its core sectors of Consumer, Healthcare and Mobility, the Group has embarked on a restructuring of its stakes in the travel and aviation sectors.
As a result, the Group has reduced its shareholding in Inbound and Outbound Travel and selected Aviation Representation businesses with the majority stake having been acquired by some members of its senior management team.
Hemas will remain a shareholder in the business with a 19.9% stake. The professionalism, dedication and commitment of the management and staff of these businesses will continue uninterrupted to provide their customers and principals high levels of service.
“We are confident that this change in ownership structure, where the management team become significant owners, will drive strong growth in the business,” said Hemas Holdings Group CEO Steven Enderby.
At the same time Hemas is committed to further strengthen its strategic partnerships in the Mobility Sector and grow its Aviation and Maritime Representations in Sri Lanka on behalf of Emirates Airlines, Evergreen Group and Far Shipping. The Group is expanding its Logistics footprint through the new Spectra Logistics Park, thereby enhancing its focus and synergies in this sector.
“Hemas as a Group will continue to develop our core Consumer brands and take these to new regional geographies, Bangladesh, India and Myanmar. In Healthcare, completing the new state-of-the-art pharmaceutical manufacturing plant at Morison PLC remains a key priority, as we target full commercial operations in early 2021. In our Hospitals, plans are underway to address the increased demand and expand our services while our Pharmaceutical Distribution has just taken on a major new nutrition agency. We continue to expand in Logistics and Mobility with our new logistics park operated by Spectra ramping up. With all these major expansion activities in our core sectors unlocking capital and management from our Travel and Aviation interests will drive future growth. We anticipate that the restructuring will be earnings accretive and enhance our return on capital. These changes will also provide improved access to capital and increased business focus for these Travel and Aviation businesses from the new ownership structure,” he added.
Hemas Holdings PLC touches the lives of millions of loyal customers, every day, via its Consumer, Healthcare and Mobility, products and services. Over a span of seven decades, Hemas has enriched lives, empowered businesses, and have made a positive contribution to the nation’s economic development. The Group has also expanded regionally with operations in Bangladesh, West Bengal and Myanmar.
(FT)