Snshine Holdings trims plantation sector exposure

Sunshine Holdings PLC (SUN) has sold a stake in its plantations unit to Pyramid Wilmar Plantations (Pvt) Ltd, part of Singapore-based Wilmar International Ltd, for Rs. 910.3 million, a stock exchange filing stated.

Wilmar is engaged in palm cultivation, oil seed crushing, sugar milling and refining.

The sale of 5.59 million shares is a result of a Joint Venture (JV) between SUN, Wilmar and Tata Global Beverages Ltd (TGBL) and it cuts SUN’s stake in Estate Management Services (Pvt) Ltd (EMS) to 33.15 percent from 51 percent.

SUN (51 percent) together with TGBL (49 percent) jointly owns EMS which in turn owns a 53.75 percent stake in Watawala Plantations PLC (WATA), producers of tea, rubber and oil palm.Mirror Business learns that subsequent to the deal Wilmar now has a stake of 9.6 percent in WATA.

The JV between SUN and Wilmar was announced in November 2012, where officials stated that it was targeted at obtaining Wilmar’s expertise in plantation management and operation to strengthen SUN’s plantation arms.

According to reports, SUN will now use Wilmar’s distribution network to market and promote the products of WATA and Watawala Marketing Limited.

In addition to plantations, SUN also has interests in healthcare, FMCG, packaging, leisure and energy. Certain directors of the company also have close relationships with Indian and global corporate Tata group.

Pyramid Wilmar, a firm incorporated in Sri Lanka is a JV company owned by Wressless Holdings Ltd of Singapore and Wilmar International Ltd of Singapore which has an extensive distribution network covering over 50 countries.

(KP)