Expolanka Holdings reportedly looking for more acquisitions

By Hiran H.Senewiratne

CSE’s most valuable listed entity Expolanka Holdings PLC yesterday disclosed that it is looking for more acquisitions.Expolanka said the company has submitted proposals in response to calls for expressions of interest for the acquisition of certain logistic companies in international markets in pursuance of its overall policy to expand its global business, CSE sources said.

“The Board wishes to emphasize, however, that such expressions of interest have not been accepted to date. Moreover, any finality to such transactions, if they are proceeded with, will be dependent on standard pre-acquisition procedures such as due diligence as well as corporate and regulatory approvals,” Expolanka said.

“The Board will ensure that the public will be kept duly informed of any progress,” it added.

During the last financial year, Expolanka made three strategic acquisitions investing $ 18 million in expanding its operations in the Americas.Amid those developments, CSE activities were bullish throughout the day and its shares gained on mid- market trade, pushed up by Expolanka shares following its corporate disclosure on acquiring a logistics company, brokers said.

“The market was mainly pushed up by Expolanka following its disclosure on acquisitions. However, the overall market is on muted sentiments,” top market analyst said. The All Share Price Index went up by 148.6 points and S and P S20 rose by 92.2 points. Turnover stood at Rs 1.6 billion sans a single crossing.

During the day, Expolanka shares contributed almost 50 per cent of the turnover and also 40 indices to the All Share Price Index. The Expolanka share price appreciated by 16 per cent or Rs 22.75. Its share price started at Rs 140.50 and at the end of the day it shot up to Rs 163.76. Due to these developments investor sentiment also improved remarkably during the day, stock market analysts said.

In the retail market top seven companies that contributed to the stock market/turnover were, Expolanka Holdings Rs 648 million (4.1 million shares traded), Lanka IOC Rs 205.1 million (1.1 million shares traded), Lankem Development Rs 68.9 million (2.3 million shares traded), ACL Cables Rs 67.6 million (925,000 shares traded), Sampath Bank Rs 61.7 million (1.9 million shares traded), LOLC Holdings Rs 39.4 million (116,000 shares traded) and Browns Investments Rs 37 million (7.2 million shares traded). During the day 43.6 million share volumes changed hands in 15000 transactions.Yesterday the Central Bank- announced US dollar buying rate was Rs 360.29 and the selling rate Rs 371.29. The inflation rate continues at around 70 per cent.